When Can Companies Gain Competitive Advantage Over Those Rivals with Plants

question 74

Multiple Choice

When can companies gain competitive advantage over those rivals with plants in countries where costs are high?

• A) When companies have production facilities that carry input costs (especially labor)much higher than that found in low-cost countries.
• B) When companies meet government regulations that favor the local business climate and environmental regulations.
• C) When companies can build production facilities in low-cost countries (or source their products from contract manufacturers in these countries).
• D) When unique natural resources are easily extracted and carry very high export/tariffs or quotas.
• E) All of these.

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Definitions:

Outsourced

Outsourced refers to the act of delegating a task or function to a third-party outside of the organization to leverage benefits such as cost savings or specialized expertise.

Build-To-Print

The process of manufacturing products directly from designs and specifications provided by the customer, without any modifications.

Edisonian Approach

Named after Thomas Edison, it refers to the method of trial and error in experimentation and innovation, where learning is achieved through making adjustments after various failures.

Trial-and-Error

A problem-solving method that involves experimenting with various approaches until finding one that succeeds.