When is decentralization of manufacturing facilities most appropriate?
A) when the product serves universal needs
B) when exchange rates are expected to remain relatively stable
C) when the product's value-to-weight ratio is high
D) when there are few trade barriers
E) when the production technology has low fixed costs

Question

Quizplus · Accepted Answer

Decentralization of manufacturing facilities is most appropriate when the production technology has low fixed costs, as it allows for flexibility and cost-effectiveness in setting up multiple smaller facilities closer to different markets.

When Is Decentralization of Manufacturing Facilities Most Appropriate