Assume an Enterprise Is Considering Establishment of a Foreign Production

question 5

Multiple Choice

Assume an enterprise is considering establishment of a foreign production facility.Which of the following best supports this decision?

• A)Its foreign competitors have higher production costs than it has.
• B)Its main competitor successfully opened a foreign plant.
• C)Its suppliers follow an agglomeration strategy.
• D)None of its competitors have foreign production facilities.

Understand the differences between wholesalers and retailers.

Comprehend FOB shipping point and FOB destination terms and their differences.

Calculate gross profit for a company.

Acknowledge the importance of tracking inventory activities in merchandising companies.

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Definitions:

Competitive Advantages

The attributes that allow an organization to outperform its competitors, including cost structure, product offerings, brand reputation, and customer service.

Core Competencies

Unique abilities or strengths of an organization that provide competitive advantage and cannot be easily imitated by others.

Target Markets

These are specific groups of consumers or organizations a business aims to serve or sell its products and services to.

SWOT Analysis

A strategic planning tool that assesses an organization's strengths, weaknesses, opportunities, and threats.