Shareholders Meeting
A senior manager at Hudson Motors has presented top management at his firm with his manufacturing strategy aimed at improving sales and profits. Based in Kentucky, Hudson Motors has always used American-made parts for its automobiles. However, sales and profits have slumped miserably over the past three years. The Hudson Motors senior manager asks top management to approve his strategy of internationalizing the company's value chain.
-Which of the following benefits does the CEO most likely cite as the rationale for purchasing automobile components from overseas suppliers?

Question

Shareholders Meeting 
A senior manager at Hudson Motors has presented top management at his firm with his manufacturing strategy aimed at improving sales and profits. Based in Kentucky, Hudson Motors has always used American-made parts for its automobiles. However, sales and profits have slumped miserably over the past three years. The Hudson Motors senior manager asks top management to approve his strategy of internationalizing the company's value chain.
-Which of the following benefits does the CEO most likely cite as the rationale for purchasing automobile components from overseas suppliers?

Quizplus · Accepted Answer

Lower costs are often cited as a primary benefit of internationalizing the value chain, as sourcing components from overseas suppliers can reduce production costs due to lower labor and material costs in some countries.

Shareholders Meeting A Senior Manager at Hudson Motors Has Presented Top Management