Which of the Following Combinations of Cost and Control Reflect

question 42

Multiple Choice

Which of the following combinations of cost and control reflect the choice of a greenfield foreign direct investment?

• A) high cost, high control
• B) medium cost, high control
• C) low cost, high control
• D) high cost, low control

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Definitions:

Safety Stock

Additional inventory kept on hand to guard against fluctuations in demand or supply, ensuring that sufficient quantities are available to meet customer needs.

Service Level

A measure of performance that shows how effectively a company is delivering services to its customers, often expressed as a percentage.

Lead Time

The period between the initiation and completion of a production process.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean (average) of the data set.