When Comparing the Total Cost of Ownership from an International

question 3

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

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Definitions:

Conditioned Response

A learned reaction to a conditioned stimulus that occurs because of previous conditioning, typically seen in classical conditioning experiments.

Reflexive Response

An automatic, involuntary reaction to a stimulus, not requiring conscious thought.

Stimulus

Any event or situation that evokes a response from an organism.

Observational Learning

A process in which an individual learns new responses by observing the behavior of another (a model) rather than through direct experience; sometimes called vicarious conditioning.