Question List Question 14 Next O Question 1 Question 2 Question 3 An appealing s

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Question List Question 14 Next O Question 1 Question 2 Question 3 An appealing strategy that a company can use to reduce its exposure to adverse exchange Question 4 rate adjustments to the costs of pairs shipped to a distribution warehouse from a plant in a Question 5 different geographic region is to Question 6 Question 7 build plants in geographic regions where there are adverse exchange rate cost adjustments C and ship pairs from these plants to regions where there are favorable exchange rate cost Question 9 Question 10 not worry about them-the sizes of the favorable and unfavorable exchange rate Question 11 adjustments in each geographic region will cancel each out over the various decision rounds Question 12 Question 13 greatly curtail shipments of pairs from plants to regions having an unfavorable/adverse O Quetion 14 Question 15 build sufficient plant capacity in each of the four geographic regions to greatly reduceQuestion 16 (maybe even eliminate) the need to ship pairs to a distribution warehouse from a plant in a uin 17 & Question 18 Question 19 adjustments. and thus have no net effect on the company over the long run. exchange rate adjustment. different geographic region--such a strategy has the added benefit of cutting tariff payments on imported footwear always lower the prices of all footwear sold in a geographic region by the full amount of any adverse exchange rate adjustment per pair that the company incurs in that region; profits on the added sales volume normally offset the costs associated with the unfavorable exchang rate adjustment. Question 20 e Answered = No Answer Copying, redistributing, or website posting is expressly prohibited and constitutes copyright violation. Copyright © 2018 by Glo-Bus Software, Inc. Next 2018 by GLO-BUS Softwarw, Inc. Privacy Policy | Terms of Use

Explanation / Answer

option D is correct one from the given alternatives.

there are many advantages to any firm which establishes its production plants in other geographical areas, based on the need and importance, those firms will chose an option. from the given options, option D is describing the benefits with establishing production units in other regions.

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