One of the Most Fundamental and Critical Decisions in Any

question 4

Multiple Choice

One of the most fundamental and critical decisions in any organization is,should we:

• A)make or buy the needed good or service?
• B)have a single source or multiple sources for a specific purchase?
• C)order small quantities to avoid carrying costs or large quantities for volume discounts?
• D)source locally or globally?
• E)form a strategic partnership with a single source or split the order to foster competition?

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Definitions:

Consumer Surplus

The distinction between the price consumers are willing to offer for a good or service and the price they really pay.

Agricultural Subsidies

Agricultural subsidies are financial incentives provided by the government to farmers or agribusinesses to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities.

Tariff

A tax imposed on imported goods and services to increase their price and reduce competition with domestic industries.

Trade Restrictions

Measures imposed by governments to control the import and export of goods and services with the intention of protecting domestic industries, which can include tariffs, quotas, and other barriers.