A firm can lower costs by dispersing production to locations around the globe where each activity can be performed most efficiently.

Question

Quizplus · Accepted Answer

This statement is true. By dispersing production to locations where each activity can be performed most efficiently, a firm can take advantage of lower labor or material costs, transportation savings, and other benefits that can lead to lower overall costs. This is often referred to as global sourcing or global production.

A Firm Can Lower Costs by Dispersing Production to Locations