Scenario 1.1 Canada Proud Is a Small Food Processing Company Located in Located

question 98

Multiple Choice

Scenario 1.1
Canada Proud is a small food processing company located in northern British Columbia. Recently, it has faced pressures from competitors who have been able to produce similar products cheaper. The owners of Canada Proud are looking into the possibility of starting a branch of the company in Mexico. Trade agreements among countries around the globe help companies like Canada Proud in becoming globally competitive. However, the company is aware that there may be opposition to such a move, especially if it affects the future viability of its current operations.
-Refer to Scenario 1.1. How can locating a new division in Mexico help the company become more competitive?

• A) it can reduce labour costs
• B) it will help the image of the company
• C) it will help the company become larger and better able to challenge competitors
• D) it will ensure access to Latin American markets for its products

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Definitions:

Inventory

Materials and products that a business keeps for the ultimate goal of resale or processing.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment relative to the amount of money invested.

Investment Opportunity

A potential situation where an individual or organization can invest capital with the expectation of achieving a return.

Profit Center

A business unit or division that is responsible for generating its own revenue and profit, with its financial performance being tracked separately.