Findings That Can Result in a Firm Deciding to Globalize

question 103

Multiple Choice

Findings that can result in a firm deciding to globalize include all but which of the following?

• A) wages are significantly lower in another location
• B) logistics to bring raw materials to the firm's location are difficult
• C) a pool of skilled workers is available elsewhere
• D) it is more cost effective to use local labor

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Definitions:

Carrying Costs

The expenses associated with holding inventory, including storage, insurance, taxes, and opportunity costs, which can affect a company's profitability.

Shortage Costs

Costs incurred when the demand for a product or service exceeds the supply, leading to potential loss of sales or customer dissatisfaction.

Restrictive Policy

A policy designed to limit or restrict certain actions, often used to control spending or investments.

Cash-Out Situation

A scenario where an individual withdraws funds from an investment or refinances a property to access the equity built up, often resulting in immediate liquid cash.