Which of the Following Is a "Trade Cost" That Firms

question 108

Multiple Choice

Which of the following is a "trade cost" that firms need to consider when making offshoring decisions?

• A) higher prices of utilities (electricity, fuel) in other countries
• B) higher costs of construction of a plant in other countries
• C) higher costs associated with poor communication and transportation
• D) lower wages paid to low-skilled workers

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Definitions:

Consumer Packaged Good

Products that are sold in a packaged form and are used by consumers on a daily basis.

Category Development Index

A measure comparing the sales performance of a category within a specific market against its average national performance.

Special Measures

Special measures are extraordinary actions or policies implemented to address specific issues, challenges, or objectives within an organization or system.

BDI

Brand Development Index, a measure used in marketing to quantify the strength of a brand's sales within a specific market or demographic.