Scenario: Ciao Manufacturing
The Italian car company,Ciao,has made plans to expand its operations by building a manufacturing facility in a foreign market.Ciao has been very successful selling its small,economical,and stylish cars in Italy and Spain,and firm managers believe that the Ciao cars will be equally profitable in other markets.
-The decision by Ciao to build a manufacturing facility in a foreign market is an example of which of the following?

Question

Quizplus · Accepted Answer

Building a manufacturing facility in a foreign market is an example of globalization of production, which involves locating production facilities in markets where inputs are cheaper or government policies are more favorable. This allows companies to reduce costs and increase efficiency by leveraging different resources and capabilities in different locations.

Scenario: Ciao Manufacturing The Italian Car Company,Ciao,has Made Plans to Expand Its Operations