Technological Factors Are Making It Feasible for Firms to Concentrate

question 36

Multiple Choice

Technological factors are making it feasible for firms to concentrate manufacturing facilities at optimal locations.The major brakes on this trend are

• A)differences in endowment factors.
• B)transportation costs and trade barriers.
• C)rising national differences in consumer tastes and preferences.
• D)growing free trade areas and democracy.
• E)declining fluctuations in exchange rates.

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Definitions:

Decentralization

The distribution of decision-making powers away from a central authority to lower levels in an organization.

Franchise

The right or license granted to an individual or group to market a company’s goods or services.

License

A legal authorization allowing an individual or entity to use a piece of property or engage in a particular activity or business.

Decentralized Company

A decentralized company allows for decision-making authority to be distributed among various levels within the organization rather than being concentrated at the top.