Multinational Companies Have Created a "Global Factory" That Is Made

question 27

Multiple Choice

Multinational companies have created a "global factory" that is made possible by two kinds of technology.The first allows things to be transported quickly from place to place.The second __________.

• A)permits profits to be hidden from national governments
• B)divides the production process into component operations that can be moved to areas of cheap labor
• C)allows the fabrication of products from synthetic materials,lowering raw material costs
• D)allows investors to recover investments rapidly in speculative markets
• E)trains workers in a single language,facilitating managerial control

---

Definitions:

Professional Buyers

Individuals whose job is to purchase goods and services for their organization, focusing on achieving the best price, quality, and supply conditions.

Antique Objects

Items of high value due to their considerable age, rarity, craftsmanship, or historical significance.

Asymmetric Information

A situation in which one party in a transaction has more or superior information compared to another, often leading to an imbalance in decision-making.

Inefficient Outcomes

Situations in which resources are not allocated optimally, leading to wasted resources or unmet potential.