The lower a product's value density,the more localized is the distribution system for that product.

Question

Quizplus · Accepted Answer

This statement is true. Value density refers to the value per unit of weight or volume of a product. Products with a low value density, such as fresh fruits and vegetables, have a shorter distance between their production and consumption sites since it may not be cost-effective to transport them over long distances. Therefore, the distribution system for such products tends to be more localized. On the other hand, products with a high value density, such as electronics and high-end jewelry, can be transported efficiently over long distances, and their distribution systems tend to be more global.

The Lower a Product's Value Density,the More Localized Is the Distribution