Ciao Manufacturing Location (Scenario)
An 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 Ciao cars will be equally profitable in other markets. Ciao managers are trying to determine whether Canada or Russia would be the best location for a new automobile manufacturing facility.
-Which of the following most likely supports the decision by Ciao managers to build a plant in Russia?
A) The Russian government is transparent and totally corruption-free.
B) Ciao would be able to take advantage of the North American Free Trade Agreement.
C) Intellectual property lawsuits are common in Russia.
D) Land and construction costs are relatively inexpensive in Russia.

Question

Quizplus · Accepted Answer

Option D is the most likely to support the decision to build a plant in Russia because lower land and construction costs can significantly reduce initial investment and operational expenses, making it an attractive option for setting up a manufacturing facility.