Question

What are Electrolux’s reasons for direct investment?

Answer 1

Answer:

Electrolux started pursuing international businesses in order to amortize costs and diminish cost of production per units. As a consequence, the company decided to pursue a strategy of horizontal integration through the acquisition of Arthur Martin, Therma, Tappan, Husqvarna. The idea behind the horizontal integration was to conquer new markets by already-established brands and create a global standard production in order to reach economies of scale. IT happens throughout the 1960s and 1970s, and Electrolux would re-sell the business not related to their industry, mainly to remain competitive and…

Answer 2

Electrolux's cause for direct funding is the growth of the business.

Explanation:

• Electrolux commenced pursuing global corporations to amortize prices and decrease the fee of manufacturing according to the unit.
• As a consequence, the employer determined to pursue an approach of horizontal integration via the purchase of Arthur Martin, Therma, Tappan, and Husqvarna.
• The concept at the back of the horizontal integration turned into overcoming new markets with already-hooked-up manufacturers and creating an international general of manufacturing to attain economies of scale.

Features  of Electrolux:

• It presents wonderful merchandise withinside the employer so that the employer expands its merchandise.
• The performance of the employer will increase with Electrolux.
• The boom in populace is the element of Electrolux
• When the populace of the united states of America will increase then the call for the product additionally increased.
• It units excessive dreams withinside the employer and achieves them.

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