Which of the Following Is a Risk That Would More

question 61

Multiple Choice

Which of the following is a risk that would more likely be seen in a lean production and just-in-time (JIT) manufacturing environment than in a traditional production environment?

• A) Reduced customer satisfaction due to product quality.
• B) Reduced raw material supply bringing the production process to a halt.
• C) Increased inventory storage costs.
• D) Increased production time resulting in lost sales.

Analyze the effects of currency valuation changes on the current account balance.

Identify the significant factors contributing to capital and current account balances.

Understand the historical shift of the United States from a creditor to a debtor nation.

Comprehend the concepts of balance of payments, balance of trade, and their components.

---

Definitions:

Trade Deficit

An economic condition that occurs when a country imports more goods and services than it exports.

Exports

Goods or services produced in one country and sold to buyers in another country, contributing to the selling country's economy.

Imports

Goods or services brought into one country from another for sale or use.

Trade Deficit

A situation in which a country's imports of goods and services exceed its exports, resulting in a negative balance of trade.