Question

which of the following might necessitate the delegation of manufacturing and production functions to foreign subsidiaries?

a, pressures for local responsiveness due to differences in infrastructure or traditional practices among countries

b, when meaningful differentiation on non-price factors is difficult and price is the main competitive weapon

c, where there is persistent excess capacity , and where consumers are powerful and face low switching costs

d, in industries producing commodity-type products

e, the liberalization of the world trade and investment environment in recent decades

Answer 1

a, pressures for local responsiveness due to differences in infrastructure or traditional practices among countries

This is an aspect of local responsiveness based on which the manufacturing and production functions is delegated to foreign subsidiaries.