Scenario: Global Manufacturing Inc. (GMI)
Global Manufacturing Inc., a fast-growing U.S. company, plans for a production system in which two components of its product will be manufactured in locations where the cost of production is lowest. The components will then be taken to maquiladoras for final assembly. GMI plans to purchase an existing company in Brazil to produce component A and build a subsidiary in Thailand to produce component B.
-Which of the following systems of production is used by GMI?

Question

Quizplus · Accepted Answer

GMI is using a rationalized system of production, which involves breaking down the production process into specialized tasks and optimizing each task for efficiency and cost-effectiveness. By locating the manufacturing of each component in the lowest cost location and using maquiladoras for final assembly, GMI is maximizing efficiency and cost savings in its production process.