Which of the following statements holds true for overseas expansion in business?
A. It leads to economies of scale that may increase the production costs of a firm.
B. It gives a firm a stronger leverage when negotiating prices with its suppliers.
C. It restricts a firm from diversifying its business risks.
D. It restricts a firm from accessing new customers.
E. It leads businesses to purchase supplies in lesser numbers.
Answer: B. It gives a firm a stronger leverage when negotiating prices with its suppliers.