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DFI to Achieve Economies of Scale. Bear Co. 



1.	DFI to Achieve Economies of Scale. Bear Co. and Viking, Inc., are automobile manufacturers that desire to benefit from economies of scale. Bear Co. has decided to establish distributorship subsidiaries in various countries, while Viking, Inc., has decided to establish manufac¬turing subsidiaries in various countries. Which firm is more likely to benefit from economies of scale?
2.	DFI to Reduce Cash Flow Volatility. Raider Chemical Co. and Ram, Inc., had similar intentions to reduce the volatility of their cash flows. Raider implemented a long range plan to establish 40 percent of its business in Canada. Ram, Inc., implemented a long range plan to establish 30 percent of its business in Europe and Asia, scattered among 12 different countries. Which company will more effectively reduce cash flow volatility once the plans are achieved?




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