The board of directors of a foreign electric automobile manufacturer is deciding if they should establish production facilities in the United States.The directors have data about other car companies' assembly facilities in the United States.Other than having local manufacturing,which benefit would be the most convincing reason for the board to follow the lead of other companies?

Question

The board of directors of a foreign electric automobile manufacturer is deciding if they should establish production facilities in the United States.The directors have data about other car companies' assembly facilities in the United States.Other than having local manufacturing,which benefit would be the most convincing reason for the board to follow the lead of other companies?​

Quizplus · Accepted Answer

By establishing production facilities in the United States, the foreign electric automobile manufacturer will have the ability to control their own distribution channels, which can lead to better management of their product, cost savings, and increased profitability. This benefit is likely to be more convincing than the presence of competitors or the ability to export throughout the world. The option of resilience to deal with the high risk of locating in America is too vague and doesn't provide a clear advantage. The fact that some U.S. states do not have car assembly facilities is also unlikely to be a significant enough factor to convince the board to establish production facilities in the United States.

The Board of Directors of a Foreign Electric Automobile Manufacturer