As the Home Nation Increases Production of R&D by Devoting

question 7

Multiple Choice

As the home nation increases production of R&D by devoting more skilled resources, its productivity rises and its relative price rises. This situation creates:

• A) lower gains from offshoring.
• B) greater gains from offshoring.
• C) no measurable gains from offshoring.
• D) equal gains from offshoring.

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Definitions:

JIT Systems

Inventory management systems that seek to minimize inventory levels by scheduling material arrivals only when they are needed in the manufacturing process.

Environmental Risk

The potential for environmental damage or adverse health effects resulting from exposure to environmental hazards or pollutants.

Control Risk

The risk that errors or irregularities in financial statements will not be prevented, or detected and corrected, by an organization's internal controls.

Supply-Chain Leverage

The strategic use of supply chain processes and partnerships to gain competitive advantage in cost, speed, or innovation.