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15 November, 16:07

In international business, a relatively high level of fixed costs can make it economical to perform a particular activity in several locations at once.

True / False.

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Answers (1)
  1. 15 November, 19:31
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    The correct answer is True.

    Explanation:

    There is idle capacity, which represents the company a high financial cost since unused facilities require maintenance, deteriorate, and possibly become obsolete before generating any income to the company.

    Perhaps the main reason why 100% of the installed capacity of a company is not used is the lack of planning, a poor market study and shortcomings in sales projections.
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