In international business, a relatively high level of fixed costs can

QUESTION

In international business, a relatively high level of fixed costs can make it economical to perform a particular activity in several locations at once.

Indicate whether the statement is true or false.

ANSWER

FALSE
In international business, a relatively low level of fixed costs can make it economical to perform a particular activity in several locations at once. This allows the firm to better accommodate demands for local responsiveness. Manufacturing in multiple locations may also help the firm avoid becoming too dependent on one location.