Dyed-Denim Corporation is seeking to lower the costs of value creation and achieve a low-cost position. As a result, it plans to move its manufacturing plant from the U. S. to Thailand, which based on company research, is the optimal location for production. This strategic move will most likely allow the company to realize

Question

Alexandria Newton

Business

19 December, 22:36

Dyed-Denim Corporation is seeking to lower the costs of value creation and achieve a low-cost position. As a result, it plans to move its manufacturing plant from the U. S. to Thailand, which based on company research, is the optimal location for production. This strategic move will most likely allow the company to realize

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Answers (1)

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Tori Hubbard · Answer 1

The correct answer is location economies

Explanation:

Location economies refers to a situation where goods are produced under the optimal economic conditions.

In determining this location, companies usually consider cultural, economic and legal perspectives, in that they are able to locate their manufacturing outfits where the combination of these factors is most favorable.

The ease of transporting output and trade barriers are also examined such that the goods produced can be transported to consuming nations all around the world without logistics headache or trade sanctions.