Factors such as weather, natural disaster, terrorism, labor strife, or political unrest can shut down a firm's operations. Which of the following is one of the measures taken by firms to hedge such risks?
A) Driving up profitability by increasing prices of market goods
B) Spreading productions facilities across the globe
C) Requesting government intervention in the form of subsidies or nationalization
D) Sourcing raw materials from countries with low labor costs
E) Diverting marketing and advertising budgets to accommodate greater production
Correct Answer:
Verified
Q60: Why has Zara been more effective in
Q61: Rising fuel costs are likely to make
Q62: Zara's production costs could rise at higher
Q63: The organizational activities that are required to
Q64: Zara's vertically integrated model is easier for
Q65: Zara also saves money by simplifying pricing.
Q67: The Zara experience involves a regular supply
Q68: Zara is susceptible to any disruption in
Q69: What are the operational and financial challenges
Q70: The strengthening of the euro relative to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents