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Why Is It Important for a Company to Be (Geographically)close

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Why is it important for a company to be (geographically)close to its suppliers to implement a JIT inventory control system?


Definitions:

Housing Bubble

A temporary condition characterized by an unusual increase in housing prices fueled by demand, speculation, and exuberant spending to the levels that income levels do not support.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers, usually downward sloping to the right indicating inverse relationship between price and quantity demanded.

Normal Good

A good for which demand increases as the income of the consumer increases, and vice versa.

Income Increase

Refers to a rise in the amount of money earned by an individual or entity, which can affect purchasing power and economic status.

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