Which of the Following Is Not a Good Option for Trying

question 64

Multiple Choice

Which of the following is not a good option for trying to remedy high internal costs vis-à-vis rivals firms?

• A) Investing in productivity-enhancing, cost-saving technological improvements
• B) Redesigning the product or some of its components to permit more economical manufacture or assembly
• C) Implementing aggressive strategic resource mapping to permit across-the-board cost reduction
• D) Outsourcing high-cost activities to vendors or contractors who can perform them more economically
• E) Relocating high-cost activities (like manufacturing) to geographic areas (like China or Latin America or Eastern Europe) where they can be performed more cheaply

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Definitions:

Exchange Rate Risk

The potential for investors to experience losses due to changes in the exchange rate between currencies.

Forward Contracts

Customizable financial contracts traded over-the-counter between two parties to buy or sell an asset at a specified future date for a price agreed upon today.

Economic Conditions

The state of an economy at a given time, encompassing factors like inflation, unemployment, and GDP growth.

Government Policies

Rules, regulations, and actions taken by a government to govern its citizens and manage its economic, social, and administrative affairs.