Question

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.

Answer 1

The correct answer is True.

Step-by-step 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.