Deciding whether to establish production facilities in many different countries or in one centralized location is part of the ________.

Question

Quizplus · Accepted Answer

The decision of whether to establish production facilities in many different countries or in one centralized location is part of the manufacturing configuration. This decision depends on various factors such as cost of labor, transportation costs, tariffs, taxes, and regulations. A centralized location can help reduce costs through economies of scale, but having production facilities in multiple countries can help mitigate risks such as supply chain disruptions, political instability, and currency fluctuations. Ultimately, the best choice depends on the specific context and priorities of the company.

Deciding Whether to Establish Production Facilities in Many Different Countries