The location of production facilities determines

Question

Quizplus · Accepted Answer

The location of production facilities determines the extent to which companies can control costs and price their products competitively. Multinationals usually can afford to shift production to take advantage of lower costs and exchange rates, whereas small to medium-size firms are often limited to exporting as the only venue for product distribution. Companies can and often do price themselves out of the market in certain countries, especially if they do not shift production to a low-labor-cost, low-tax country. This appears in the "Production Facilities" section (16-1a).

The Location of Production Facilities Determines