Question

A U.S. technology company has decided to move some of its manufacturing processes to facilities in Japan, utilizing the nation's expertise in technological manufacturing. Doing so gives them the ability to price their products at a lower price point locally than their other Made in America competitors. By performing this value creation activity in an optimal location, the company has:

a. realized location economies.
b. realized their multinational potential.
c. realized cost economies.
d. realized product economies.

Answer 1

The correct answer is letter "A": realized location economies.

Step-by-step explanation:

Location economies manage massive amounts of data, require speed and accuracy, and establish communication with partners in different geographical places with the purpose of maximizing profits taking advantage of the sources available in different parts of the world.