Which of the following is true about production and logistics in international businesses?

Question

Quizplus · Accepted Answer

In international businesses, production and logistics are closely linked as they both involve the movement and management of goods and services from one location to another. An international firm may have production facilities in multiple countries, which requires effective logistics management to ensure timely delivery of goods and materials. Therefore, production and logistics are closely interlinked in an international business.

Option A is incorrect because production can denote service activities, such as the production of software, consulting services, or financial services. 
Option B is incorrect as developing nations may outsource some service activities, but not the production of service activities to the United States. 
Option D is incorrect because an international firm can have production functions in multiple countries as per their respective strategies. 
Option E is also incorrect because demands for local responsiveness create pressures to decentralize production activities and establish production facilities closer to the target market.

Which of the Following Is True About Production and Logistics