When Comparing the Total Cost of Ownership from an International

question 2

Multiple Choice

When comparing the total cost of ownership from an international supplier to that of a domestic supplier, the international supplier's:

• A) lower labor costs are easily eroded by additional shipping and insurance costs.
• B) price will be higher if the U.S. dollar is strengthening on the exchange rate.
• C) lower labor costs offset the high cost of inefficient equipment and processes.
• D) lower labor rates must be considered in the context of productivity and quality.
• E) prices are carefully controlled by the U.S. government to prevent dumping.

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Definitions:

Experiential System

Part of dual-process theories of cognition, referring to the intuitive, automatic, and often emotional way of processing information.

Schema

A mental structure, stored in memory, that is based on prior knowledge.

Dual Process

A theory describing two distinct systems in the brain that process information: one that is automatic and rapid, and another that is deliberate and slow.

Information Processing

The series of actions or steps taken by the brain to receive, interpret, store, and retrieve information.