Question

Starting Autom Sing Alo ational Scenario n g con theory and the whole One wh o of the customer serum bour h oring in China, the CEO was mostly i the possibility of a part in Chine The CEO explained that serving China's dy growing middle class population would enable String to horse the size n Ocom OD

Answer 1

The correct answer is Option B. Developing Economies of Scale.
In economics, Economies of Scale means decreasing cost with Increasing volume of operations.

Sterling Auto International is trying to expand its operations in China where the rapidly growing middle class population would enable Sterling Auto to increase customer base.
The CEO would be interested in employing the skilled labor force of China for mass production to cater to the population needs. Scarcity of labor wouldn't be a problem and would lead to increased volume of outputs and optimization of transport costs since the production and sales would be within China, thereby achieving Economies of Scale.

Based on the above, Options A, C & D are incorrect.