Question 1
An arrangement whereby the firm owns, or seeks to own, multiple stages of a value chain for producing, selling, and delivering a product or service is termed as ________.
◦ vertical integration
◦ horizontal integration
◦ decentralization
◦ centralization
Question 2
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 questions is most important for Ciao managers to evaluate in their decision regarding the location of the new manufacturing facility?
◦ What would be the costs and availability of skilled labor in Canada and Russia?
◦ What other industries manufacture products in Canada and Russia?
◦ How much time will it take to train managers in Canada and Russia?
◦ How should the current marketing strategies be modified to serve markets in Canada and Russia?
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