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The Following Situation Is an Example of an Import Substitution

question 49

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The following situation is an example of an import substitution strategy. Costa Rica has a comparative advantage in the production of coffee and, as a result, the Costa Rican government grants incentives to coffee planters to improve their performance in the international marketplace.


Definitions:

Order Cycle Time

A metric that measures the length of the order cycle, or the ability of the order system to react to customer orders.

Perfect Order Rate

A metric used in supply chain management that measures the percentage of orders delivered to the right place, at the right time, in the right condition, and with correct documentation.

Shipped on Time

Shipped on time refers to the process of sending goods to the intended recipient within the promised or scheduled delivery timeframe.

Dollar Fill Rate

A metric used to measure the value of product shipped or delivered as a percentage of the total value of product ordered.

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