Ciao Manufacturing Location (Scenario)

question 36

Multiple Choice

Ciao Manufacturing Location (Scenario)
An Italian car company, Ciao, has made plans to expand its operations by building a manufacturing facility in a foreign market. Ciao has been very successful selling its small, economical, and stylish cars in Italy and Spain, and firm managers believe that Ciao cars will be equally profitable in other markets. Ciao managers are trying to determine whether Canada or Russia would be the best location for a new automobile manufacturing facility.
-Which of the following questions is most important for Ciao managers to evaluate in their decision regarding the location of the new manufacturing facility?

• A) What would be the costs and availability of skilled labor in Canada and Russia?
• B) What other industries manufacture products in Canada and Russia?
• C) How much time will it take to train managers in Canada and Russia?
• D) How should the current marketing strategies be modified to serve markets in Canada and Russia?

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Definitions:

Stock Prices

The cost of purchasing a share of a company, reflecting the market's valuation of that company.

Standard Deviation

A measurement that quantifies the variation or dispersion of a set of numerical data points.

Annual Rate

The annual rate refers to the interest or return on an investment over a one-year period, expressed as a percentage of the investment's initial value.

Speculative Bubble

A situation in financial markets where asset prices are driven by exuberant market behavior, greatly exceeding the asset's intrinsic value.