All of the Following Are Potential Advantages to Initiating, Continuing

question 10

Multiple Choice

All of the following are potential advantages to initiating, continuing, and/or expanding international operations EXCEPT

• A) firms can gain new customers for their products.
• B) foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets.
• C) foreign operations can allow firms to establish low-cost production facilities in locations close to raw materials and/or cheap labor.
• D) foreign operations could be seized by nationalistic factions.
• E) foreign operations may result in reduced tariffs, lower taxes, and favorable political treatment.

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Definitions:

Supply Chain Management

The handling and oversight of a product's flow from raw material sourcing to production, storage, and delivery to customers.

Customer Orders

Requests by customers to purchase goods or services from a seller.

Supplier Performance

The assessment of a supplier's ability to meet buyer expectations, including factors such as product quality, delivery time, and compliance with terms.

Rapid Response

The ability to react quickly and effectively to unexpected situations or changes, often crucial in emergency or customer service scenarios.