A Key Concept of the Just-In-Time Is

question 6

Multiple Choice

A key concept of the Just-In-Time is

• A)the raw materials, work in process, and finished goods inventories of manufacturing companies act as buffers so that operations can proceed smoothly even if suppliers are late with deliveries or a department is unable to operate for a brief period due to breakdowns or other reasons.
• B)the use of many suppliers in order to ensure rapid delivery of materials for production.
• C)the maintenance of a stock of raw materials so that defective materials can be replaced quickly in order to maintain a high rate of productivity.
• D)inventories are costly to carry and create operational problems.

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Definitions:

Net Capital Outflow

Refers to the difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners. A positive net capital outflow means a country is investing more abroad than others are investing in it.

Open-Economy Macroeconomic Model

A framework for analyzing economies that engage in international trade, highlighting how these economies interact with the rest of the world economically.

Import Quotas

Restrictions set by a government on the quantity or value of certain goods that can be imported into a country, often to protect domestic industries.

Exchange Rate

The price at which one currency can be exchanged for another in the foreign exchange market.