4.3.2.4a - Risk spreading and economies of scale

Explain risk spreading and economies of scale as reasons for global mergers, takeovers or joint ventures.

Use a - risk spreading and economies of scale to connect the rule to the data and decision in the question.

This matters because a - risk spreading and economies of scale determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - risk spreading and economies of scale to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Risk spreading and economies of scale is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.