Scenario: Blickinstock at the Crossroads
Auto parts supplier, Blickinstock Ltd., would like to expand its presence in Latin America. To that end, Blickinstock is trying to decide whether to purchase an existing company in a remote region of Argentina or build its own subsidiary. Keith Moon, Blickinstock's vice president of global business development, will be making a presentation to the board outlining the company's options.
-A system of production in which each of a product's components is produced in the location where the cost of producing that component is lowest is called ________ production.
A) rationalized
B) craft
C) job
D) customized

Question

Quizplus · Accepted Answer

Rationalized production, also known as global production or decentralized production, involves producing each component of a product in the location where it is most cost-effective. This would be the most effective option for Blickinstock as they are trying to expand their presence in Latin America and the cost of production may vary in different regions. By using rationalized production, Blickinstock can maximize cost-efficiency and reach a broader customer base. The other options mentioned in the scenario do not consider the cost-effectiveness of production in different locations.