Organizations are under pressure to produce products in the optimal location and to serve the world market from there if their products have low value-to-weight ratios.

Question

Quizplus · Accepted Answer

Products that have high value-to-weight ratios are expensive and they do not weigh very much. Their transportation costs account for a very small percentage of total costs. Given this, other things being equal, there is great pressure to produce these products in the optimal location and to serve the world market from there.

Organizations Are Under Pressure to Produce Products in the Optimal