Because of formal and informal trade barriers and the uncertainties of the world's current floating exchange rate regime,several automobile companies have established _____ manufacturing operations in three major regional markets.

Question

Quizplus · Accepted Answer

Although the availability of flexible manufacturing and cars' relatively high value-to-weight ratios suggest concentrated manufacturing,the combination of formal and informal trade barriers and the uncertainties of the world's current floating exchange rate regime have inhibited firms' ability to pursue this strategy.For these reasons,several automobile companies have established "top-to-bottom" manufacturing operations in three major regional markets: Asia,North America,and Western Europe.

Because of Formal and Informal Trade Barriers and the Uncertainties