A potential problem with rationalized production is that ________.
A) it is highly inefficient
B) a work stoppage in one country can bring the entire production process to a standstill
C) unionization in one country affects operations in other countries
D) all of the above

Question

Quizplus · Accepted Answer

Rationalized production involves coordinating production processes and supply chains across multiple countries, and relies on uninterrupted flow of goods and services between them. Any disruption, such as a work stoppage in one country, can cause delays and bottlenecks in the entire production process, leading to significant losses for the firms involved. This makes rationalized production vulnerable to external factors, such as political instability, trade disputes, or natural disasters. While unionization and efficiency concerns may also affect rationalized production, they are not necessarily inherent problems with the approach.

A Potential Problem with Rationalized Production Is That ________