When Is Decentralization of Manufacturing Appropriate

question 7

Multiple Choice

When is decentralization of manufacturing appropriate?

• A) the product serves universal needs
• B) important exchange rates are expected to remain relatively stable
• C) the product's value-to-weight ratio is high
• D) trade barriers are high
• E) high minimum efficient scale

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Definitions:

Technology Companies

Firms that produce or provide technology products and services, including software development, electronics manufacturing, and information technology services.

Reported Performance

The presentation of a company's operational and financial achievements over a specific period, typically as stated in its financial statements.

P/E Ratio

The price-to-earnings ratio, a measure of a company's current share price relative to its per-share earnings.

Accounting Methods

Systems and rules used for measuring, tracking, and recording a company’s financial transactions, often influencing how income and expenses are reported.