According to the PLC Theory, What Is the Most Likely

question 39

Multiple Choice

According to the PLC theory, what is the most likely reason that companies manufacture products in locations with high labor rates during the introductory stage of a product's life cycle?

• A)Doing so allows use of long production runs using capital-intensive methods.
• B)Many consumers are willing to pay high costs for the newest products.
• C)Transportation costs are reduced by focusing on markets in developed countries.
• D)Import restrictions prevent production in countries other than the ones making product innovations.

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Definitions:

Productivity Improvements

Refers to measures or initiatives implemented to increase the efficiency and effectiveness of a process or operation, enhancing the output relative to input.

Explicit Financial Indicator

A clear and direct measure or metric used to assess the financial performance of an organization, such as revenue, profit, or return on investment.

Return on Investment

A financial metric that calculates the profitability of an investment relative to its cost.

General Labor Cost

The total expense that a company incurs for the salaries, wages, benefits, and other compensation for its workforce not assigned to specific tasks or projects.