Wharton Enterprises, a U.S.firm, manufactures small kitchen appliances.The firm has recently developed an innovative blender design that Wharton executives anticipate being very profitable.Currently, Wharton has production facilities in the United States and China.Wharton executives are trying to determine where the new product should be manufactured.Which of the following best supports a decision to manufacture the new product in the United States instead of China?

Question

Quizplus · Accepted Answer

Intellectual property rights are a major concern when it comes to manufacturing new products, and the fact that U.S. patent laws strongly protect them is a compelling reason to manufacture the new blender in the United States rather than China. If the new design is particularly innovative, it may be more vulnerable to infringement in China, where patent protection is not always as robust.