Which of the Following Would Exert Pressure on a U

question 88

Multiple Choice

Which of the following would exert pressure on a U.S.-based clothing company, ZSource Ltd., to become locally responsive?

• A) to seek cost reduction through scale economies
• B) to conduct global sourcing of raw materials, components, energy, and labor
• C) to monitor and respond to global competitors
• D) to meet host government requirements and regulations

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Definitions:

Crowding Out

An economic phenomenon where increased government spending reduces private sector investment or consumption due to higher interest rates.

Interest Rate

The percentage charged on a loan or paid on savings, representing the cost of borrowing or the gain on saved funds.

Private Sector

The part of the economy that is owned and operated by individuals and companies for profit, unlike the public sector, which is controlled by the government.

Credit Demand

The desire or willingness of consumers and businesses to borrow money at a given interest rate.