90.2K

Verified Solution

Link Copied!

Which one of the following is an advantage of having production facilities to manufacture athletic footwear in all four geographic regions? o Increased ability to achieve lower reject rates and lower labor costs per pair produced than rivals having only 1, 2, or 3 plants Increased ability to reduce payments for import tariffs because when a company has production operations in all four geographic regions it typically needs to ship fewer pairs of footwear from production facilities in one region to distribution centers in a different region o Increased ability to achieve a higher S/Q rating on branded pairs at a lower cost than rivals having only 1, 2, or 3 plants o Maximum ability to secure volume discounts on purchases of superior materials and thereby lower the company's costs of using superior materials in producing branded footwear o Increased ability to achieve a low production per pair cost advantage over rivals having production operations in only 1, 2 or 3 geographic regions Valid reasons to open a new production facility in Latin America include the fact that branded footwear demand in Latin America is bigger and growing faster than in any of the other 3 geographic regions. the exceptionally high profit margins that can be earned on the sales of both branded footwear and private-label footwear in Latin America, o the strong preference that Latin American consumers have for purchasing branded footwear with a lower S//Q rating, as compared to consumers in the Asia-Pacific region. lower production labor costs (as compared to North America and Europe-Africa) and the ability to avoid paying import tariffs on all pairs produced and sold in Latin America. the fact that Latin America is the lowest cost region in the world in which to produce and market athletic footwear having an S/Q rating of 5 stars or higher

Answer & Explanation Solved by verified expert

See Answer