The Phenomenon Wherein Slight Demand Variability Becomes Magnified as Demand

question 15

Multiple Choice

The phenomenon wherein slight demand variability becomes magnified as demand information is transmitted back upstream in the supply chain is known as the

• A)value chain effect
• B)information effect
• C)bullwhip effect
• D)risk effect

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Definitions:

Interest Rate

The segment of a loan applied as interest for the borrower, customarily shown as an annual percentage of the current loan outstanding.

Net Exports

The value of a country's total exports minus the value of its total imports. It is a measure of a nation's foreign trade balance.

Net Capital Outflow

The net flow of funds used for investments in foreign assets by a country minus the flow of investment funds into the country from abroad within a specified timeframe.

Foreign Assets

Investments or ownerships in enterprises, securities, or properties located outside the investor's domestic country.