× Didn't find what you were looking for? Ask a question
  
  
Top Posters
Since Sunday
22
22
19
18
18
17
17
16
16
16
16
16
New Topic  
wrote...
Posts: 425
A year ago
When making the make-or-buy decision, international firms must make trade-offs between costs and three other variables. What are they? Explain the nature of the trade-off international firms must make.
Read 12 times
3 Replies
Related Topics
Replies
wrote...
A year ago
 International firms must make trade-offs between costs and control, risk, investment, and flexibility. Control: Making a component has the advantages of increasing the firm's control over product quality, delivery schedules, design changes, and costs. A firm that buys from external suppliers may become overly dependent on those suppliers. It can also be expensive to enforce contracts with suppliers. Risk: Buying a component rather than making it has the advantage of reducing the firm's financial and operating risks. Investment: Buying from others lowers the firm's level of investment. By not having to build a new factory or learn a technology, a firm can free up capital for other productive uses. Flexibility: A firm that buys rather than makes retains the flexibility to change suppliers as circumstances dictate.
wrote...
A year ago
TYSVM
wrote...
A year ago
Ma pleasure... Slight Smile
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers.
Learn More
Improve Grades
Help Others
Save Time
Accessible 24/7
  112 People Browsing
Your Opinion
Do you believe in global warming?
Votes: 186

Related Images
 567
 342
 48