Which of the following statements is true about performing a manufactu

QUESTION

Which of the following statements is true about performing a manufacturing activity in several locations at once?

A. A manufacturing activity must be performed at multiple locations when the fixed costs of setting up a production plant are high.

B. Performing a manufacturing activity in several locations makes it difficult for a firm to accommodate demands for local responsiveness.

C. Producing in multiple locations reduces the bargaining power of a firm against manufacturers.

D. The larger the minimum efficient scale of a plant relative to total global demand, the greater the need for decentralizing production to multiple locations.

E. Many firms disperse their manufacturing plants to different locations as a “real hedge” against potentially adverse moves in currencies.

ANSWER

E