Which of the Following Might Necessitate the Delegation of Manufacturing

question 59

Multiple Choice

Which of the following might necessitate the delegation of manufacturing and production functions to foreign subsidiaries?

• A) Pressures for local responsiveness due to differences in infrastructure or traditional practices among countries
• B) When meaningful differentiation on non-price factors is difficult and price is the main competitive weapon
• C) Where there is persistent excess capacity, and where consumers are powerful and face low switching costs
• D) In industries producing commodity-type products
• E) The liberalization of the world trade and investment environment in recent decades

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