The Key Decision Factors That Pertain to Where an International

question 80

Multiple Choice

The key decision factors that pertain to where an international firm locates its manufacturing facilities can be grouped under three broad headings.These are:

• A) political factors, economic factors, and legal factors
• B) country factors, technological factors, and product factors
• C) product factors, service factors, and labour factors
• D) language factors, cultural factors, and transportation factors
• E) market factors, production factors, and logistics factors

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Definitions:

Standardization

The process of making something conform to a standard, typically to facilitate compatibility and interoperability among multiple items or systems.

Government Regulation

The establishment of rules by government authorities designed to control and govern the conduct of industries, businesses, and individuals to ensure public welfare.

Adverse Selection

A situation where asymmetrical information leads to the selection of poor risks by one party in a contract or agreement.

Policy Premiums

The amounts paid for insurance policies by the insured to the insurer to provide coverage for various risks.