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Because a Firm Must Establish Production Facilities in a Foreign

question 120

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Because a firm must establish production facilities in a foreign country or acquire a foreign enterprise,FDI is expensive.


Definitions:

Retailing

The selling of goods or services directly to consumers, usually in small quantities.

Consolidated

Combined into a single entity or group, often for the purposes of streamlining operations or improving efficiency.

Centralized

A model where decision-making and processes are consolidated at a single central point, often leading to efficiencies in inventory management, purchasing, and logistics.

Dell's Supply Chain

A highly efficient model focused on build-to-order manufacturing, direct sales, and strong supplier relationships, leading to reduced inventories and customized products.

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