An Advantage of Engaging in In-House Production of Products and Components

question 35

Multiple Choice

An advantage of engaging in in-house production of products and components is that

• A) the firm will have fewer subunits to control by making products in-house.
• B) it will help the firm capture more orders from other countries.
• C) it enables a firm to protect the proprietary technologies that it has.
• D) firms can make better use of the location advantages of certain countries.

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Definitions:

Customers' Preferences

The tastes, likes, or desires of consumers that influence their purchasing decisions.

External Force

Factors or influences originating outside an organization that necessitate change or adaptation by the organization.

Organizational Restructuring

The process of changing the structure or organization of a company to increase efficiency, effectiveness, or to adjust to new objectives.

Management Changes

Modifications or adjustments made to the structure, policies, or procedures of an organization's management.