An automobile manufacturing company has its production units and sales units in two different locations. The production units are situated in geographical areas that offer cheap labor and easy resource availability. On the other hand, the sales units are in places where there is a high demand for the products. Which of the following strategies is best exemplified in this scenario?

Question

Quizplus · Accepted Answer

An arbitrage strategy is best exemplified in this scenario because the company is taking advantage of the differences in costs and demand across different locations by situating production units where labor and resources are cheaper and sales units where demand is higher.

An Automobile Manufacturing Company Has Its Production Units and Sales