Using Contract Manufacturing as a Strategy to Reach Global Markets

question 11

Multiple Choice

Using contract manufacturing as a strategy to reach global markets gives firms the advantage of

• A) expert and experienced laborers.
• B) reduced financial risks.
• C) increased volatility.
• D) currency stability.

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Definitions:

Beer

An alcoholic drink made from yeast-fermented malt flavored with hops.

Budget Constraint

A budget constraint represents the limits on the consumption bundles that a consumer can afford, given the consumer's income and the prices of goods.

Opportunity Set

All possible combinations of consumption and leisure that a person can achieve given their resources and prices.

Income

The money received, typically on a regular basis, for work or through investments.