Which of the following statements is true about performing a manufacturing activity in several locations at once?

A. A manufacturing activity must be performed at multiple locations when the fixed costs of setting up a production plant are high.

B. Performing a manufacturing activity in several locations makes it difficult for a firm to accommodate demands for local responsiveness.

C. Producing in multiple locations reduces the bargaining power of a firm against manufacturers.

D. The larger the minimum efficient scale of a plant relative to total global demand, the greater the need for decentralizing production to multiple locations.

E. Many firms disperse their manufacturing plants to different locations as a "real hedge" against potentially adverse moves in currencies.

E

Business

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Licensing agreements enable energy and defense firms to enter nations that restrict the foreign ownership of businesses related to national security

Indicate whether the statement is true or false

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