A–Z Rubber Products has decided to relocate its manufacturing operations overseas because it is seeking an advantage by operating a larger manufacturing plant - HSC - SSCE Business Studies - Question 3 - 2003 - Paper 1

The correct answer is (B) To gain economies of scale.

Reasoning:

Operating a larger manufacturing plant typically allows a company to decrease the per-unit cost of production as the volume of production increases. This phenomenon is known as economies of scale. By relocating manufacturing operations overseas, A-Z Rubber Products can potentially access a larger market or lower production costs, which in turn can enhance their competitiveness and profitability in the long run.