Which of the Following Statements Regarding FedEx Is True

question 85

Multiple Choice

Which of the following statements regarding FedEx is true?

• A) Its hub in Memphis, Tennessee, was selected because of its low cost.
• B) Memphis, Tennessee, is the only hub in the company's global flight network.
• C) FedEx believes the hub system helps reduce mishandling and delays due to better controls.
• D) FedEx uses a hub system in the U.S., but a city-to-city network in other countries.
• E) Memphis is FedEx's only hub airport in the United States.

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Definitions:

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other producers.

Absolute Advantage

The ability of a country or individual to produce a good more efficiently than another entity with the same resources.

Trade Deficit

The circumstance where a country's imports outpace its exports, causing a negative trade balance.

Trade Surpluses

Trade surpluses occur when a country's exports exceed its imports over a given period, indicating a net inflow of domestic currency from foreign markets.