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Question
Uvicon Inc. and Bionor Inc. are firms that compete against each other in the global market. Uvicon has a high level of fixed costs and high minimum efficient scale, whereas Bionor has a low level of fixed costs and low minimum efficient scale. In this scenario, which of the following is true?A.Uvicon will be better prepared to hedge against potential adverse moves in currencies than Bionor.
B.Uvicon will benefit from centralizing its production activities and Bionor from decentralizing.
C.Uvicon will have more bargaining power over contract manufacturers than Bionor.
D.Uvicon will be better enabled to adapt to changes in consumer demand in regional markets than Bionor.
E.Uvicon will be better prepared to accommodate demands for local responsiveness than Bionor.
Answer
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Related questions
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