The Three Important Management Issues for Operations Managers Dealing with Their

question 6

Multiple Choice

The three important management issues for operations managers dealing with their international network of operations are:

• A) Frequently flyer schemes, expense accounts and lightweight luggage
• B) Customers, suppliers, and transformation resources
• C) Culture, co-ordination, and communication
• D) None of the above

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of individuals increases, opposite to normal goods.

Normal Good

A good for which demand increases when income increases, and falls when income decreases but price remains constant, showing a direct relationship between income and demand.

Income Elasticity

A measure of how much the demand for a good or service changes in response to a change in consumers' income levels.

Normal Good

A good for which demand increases as consumer income rises, and decreases as consumer income falls.