Which One of the Following Is a Characteristic of an Efficient

question 23

Multiple Choice

Which one of the following is a characteristic of an efficient and effective supply chain management?

• A) Decrease threat of new entrant to market place
• B) Increase its own power as supplier
• C) Decrease threat of substitute products and services
• D) All of these

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Definitions:

Comparative Advantage

The skill of an entity, whether a person, corporation, or country, to create a product or service with smaller opportunity costs than its competition.

Absolute Advantage

Absolute advantage is the ability of a country or entity to produce a good or service more efficiently than others, using fewer resources.

Trade

The exchange of goods or services between individuals, businesses, or countries.

World Price

The worldwide market rate of a product or service, shaped by the global conditions of supply and demand.