A Key Reason Why Global Manufacturers Are Unable to Have

question 92

Multiple Choice

A key reason why global manufacturers are unable to have a consolidated view of global demand and supply is because ______.

• A)supply chains are planned and managed by disparate regional systems
• B)firms in the supply chain continue to manage globally while they are thinking locally
• C)the primary firm has different expectations from each link in the supply chain
• D)the pricing policies of different manufacturers are usually different

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Definitions:

Walras's Law

A principle in general equilibrium theory stating that if all markets but one are in equilibrium, then the remaining market must also be in equilibrium.

Cobb-Douglas Utility Functions

A particular form of utility function used in economics that represents preferences over two goods, characterized by their constant elasticity of substitution.

Pareto Optimal

A distribution state of resources where no adjustment can be made to better the position of any individual or evaluation criterion without negatively affecting another.

Consumption Externalities

The impact of one's consumption activities on the welfare of others that is not reflected in market prices, either positive or negative.