Firms Try to Locate Production of Each Stage of the Value

question 24

True/False

Firms try to locate production of each stage of the value chain in those countries where transport costs to the next stage are the lowest.

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Definitions:

Heuristic

A problem-solving strategy using a practical method or various shortcuts to produce solutions that may not be optimal but are sufficient for reaching immediate goals.

Prototype

An original model or preliminary version of a product from which other forms are developed or copied.

Algorithm

A process or set of rules to be followed in calculations or other problem-solving operations, especially by a computer.

Mental Image

A representation of a sensory experience in the mind, which can be visual, auditory, or related to other senses, even in the absence of external stimuli.