Imagine that an Australian manufacturing firm would like to open a new plant in Europe. The new plant will house both a research-and-development center and a major production line. In evaluating the best location for the plant, the firm rejects moving to Germany, which is known for its world-class engineers but also for the higher salaries commanded by its union-protected workers, in favor of Bosnia-Herzegovina, where labor is less expensive. The firm has placed a priority on:

Imagine that an Australian manufacturing firm would like to open a new plant in Europe. The new plant will house both a research-and-development center and a major production line. In evaluating the best location for the plant, the firm rejects moving to Germany, which is known for its world-class engineers but also for the higher salaries commanded by its union-protected workers, in favor of Bosnia-Herzegovina, where labor is less expensive. The firm has placed a priority on:




a. matching efficiency-seeking goals with location.
b. matching innovation-seeking goals with location.
c. matching natural resource-seeking goals with location.
d. matching market-seeking goals with location.


Answer: a. matching efficiency-seeking goals with location.


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