Question

1. Companies that do not include environmental costs into the cost of production ______.

   	a.	are conscientious corporate citizens
   	b.	are likely to have high production costs
   	c.	have an advantage over those companies that do so
   	d.	may face serious problems in the long run

1 points

Question 21

1. Which of the following terms is correctly paired with its description?

   	a.	Core competencies: factors that identify the firm as belonging to an industry.
   	b.	Business strategy: strategy that governs mergers and acquisitions.
   	c.	Corporate strategy: strategy that governs day-to-day operations.
   	d.	Critical success factors (CSFs): strategic factors that a company requires to compete in a given industry.

1 points

Question 22

1. Offshoring of manufacturing to countries such as Brazil and Vietnam has been encouraged by ______.

   	a.	the need for sustainable manufacturing practices
   	b.	the higher transportation costs
   	c.	the longer shipping times
   	d.	need for lower manufacturing costs

Answer 1

20.The correct answer is option d:may face serious problems in the long run

Environmental costs are costs that would be incurred if the operations of the company deteriorates the environment and other natural resources.These costs include legal fines,waste management costs,penalties etc.If a firm does not include these costs into their costs,there are very high chances that they may face serious damage to their reputation and business in the long run.

21.The correct answer is option d: CSFs :strategic factors that a company requires to compete in a given given industry

Critical success factors are those strategic factors that are unique to a firm, that enables it to compete successfully in the industry and create sustainable competitive advantage.

All the other options are not correct explanations of the terms given and hence are not right answers.

22.The correct answer is option d :Need for lower manufacturing costs

Brazil and Vietnam are low cost countries where there is availability of cheap inputs.Hence,offshoring of manufacturing to these countries reduces the overall manufacturing costs,and thus enhances the operational efficiency.

All other options actually discourage offshoring operations.