A Firm Establishing a Manufacturing Plant in a Foreign Country

question 58

Multiple Choice

A firm establishing a manufacturing plant in a foreign country due to the cheap labor costs in that country is an example of the _____ advantage that the firm enjoys.

• A) location 
• B) ownership 
• C) internalization 
• D) externalization

Recognize the contribution of e-marketplaces to facilitating real-time exchanges of information, money, products, and services.

Understand the concept of buy classes and their implications on organizational buying behavior.

Recognize different types of purchasing situations, including new buys, straight rebuys, and modified rebuys.

Comprehend the dynamics and benefits of reverse auctions in organizational buying.

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Definitions:

Deodorant

A substance applied to the body to prevent or mask body odor due to bacterial breakdown of perspiration.

Transducer

A device that transforms power from one system to another in the same or different form.

Power

The ability or capacity to do something or act in a particular way; often refers to the amount of control one has over circumstances or other entities.

Planes

A flat or relatively smooth surface; points of reference by which positions or parts of the body are indicated.