For which of the following companies will geographic distance be the most relevant factor in deciding whether to trade with a target country?
A) a firm that manufactures cell phone batteries
B) a firm that extracts and exports iron ore
C) a firm that produces movies
D) a firm that sells wristwatches

Question

Quizplus · Accepted Answer

Geographic distance is particularly relevant when trading products with low value-to-weight ratios such as steel, cement, or other bulk products and fragile and perishable products such as glass or fresh meats and fruits.

For Which of the Following Companies Will Geographic Distance Be