Extensive Customization of a Product Offered in Different International Markets

question 5

Multiple Choice

Extensive customization of a product offered in different international markets can defeat which of the following benefits of global trade?

• A) lowered production costs
• B) access to less expensive labor
• C) access to less expensive materials
• D) access to new consumer markets
• E) ability to offset domestic economic cycles

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Definitions:

Controllable Margin

The portion of profit or margin that can be influenced by managing operating costs and expenses.

Operating Data

Information related to the day-to-day functions and performance of a business, used for analysis and decision making.

Contribution Margin

The difference between a company's sales revenue and its variable costs.

Management By Exception

A management strategy where only significant deviations from planned results are addressed, focusing managerial attention on the most important issues.