Which of the following questions is most important for Ciao managers to evaluate in their decision regarding the location of the new manufacturing facility?
A) What would be the costs and availability of skilled labor in Canada and Russia?
B) What other industries manufacture products in Canada and Russia?
C) How much time will it take to train managers in Canada and Russia?
D) How will marketing need to be modified in Canada and Russia?
Question 2
A U.S. firm with a production facility in Brazil uses its own personnel to handle almost all activities because their outsourcing would be too costly and inefficient.
Its internalization will most likely lead to cost savings because the firm can avoid ________.
A) costly customs brokers
B) high, fixed start-up costs
C) the costs of enforcing an agreement
D) sharing profits
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