When Automobile Manufacturers Introduced SUVs, They Distributed and Promoted Them

question 113

Multiple Choice

When automobile manufacturers introduced SUVs, they distributed and promoted them in the United States, but not in Europe where gasoline is heavily taxed and roads are much smaller. Car manufacturers recognized that this new line of cars

• A)provided equivalent relative advantage for both European and U.S. customers.
• B)were not compatible with European market conditions.
• C)did not provide benefits that were observable.
• D)involved technology that was too complex.
• E)could not be easily tried by consumers.

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Definitions:

Conversion Costs

The costs required to convert raw materials into finished products, which include labor costs and manufacturing overhead.

Direct Costs

Costs that can be directly traced to the production of specific goods or services, such as raw materials and direct labor.

Uncontrollable

Refers to factors or costs that cannot be controlled or influenced by the management or operations of a business.

Loan Interest

The additional money paid to a lender in return for borrowing money, calculated as a percentage of the loan amount.