In Terms of Making a Location Decision,when Fixed Costs Are

question 65

Multiple Choice

In terms of making a location decision,when fixed costs are substantial,the minimum efficient scale of production is high,and flexible manufacturing technologies are available,it makes sense to:

• A)manufacture the product in every country in which it is sold.
• B)concentrate production at a few choice locations.
• C)spread production over to as many locations as possible.
• D)outsource production to a third party.

---

Definitions:

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specific time frame.

Tariff

Tariff is a tax imposed on imported goods and services to regulate trade and to increase government revenue.

International Trade

International trade involving the transfer of goods and services between countries or areas.

Well-Being

The state of being comfortable, healthy, or happy, often measured by factors such as income, employment, and physical and mental health.