QUESTION 9

There are two basic strategies for locating manufacturing facilities. These are:

1. concentrating them in the optimal location and serve the world market from there and, concentrate them in markets that are parts of major trade blocks.
2. locate at least one manufacturing facility in each continent in which the firm is active and, concentrate manufacturing at an optimal location.
3. concentrate them in the optimal location and serve the world market from there and, decentralising them in various regional or national locations that are close to major markets.
4. concentrate them in markets that are part of major trade blocks and, centralising them at a single location.

Answer: _____

QUESTION 10

A ______ eliminates trade barriers between member countries and adopts a common external trade policy.

1. free trade area
2. global union
3. tariff union
4. customs union

Answer: _____