Question

7) What form of efficiency did Mercedes-Benz capture by initially producing its sport utility vehicle only in Alabama? A) multinational flexibility B) economies of scale C) location efficiencies D) economies of scope

Answer 1

C) location efficiencies

Mercedes-Benz captured location efficiencies by initially producing its sport utility vehicle in Alabama. Location efficiencies refer to the benefits a company gains from selecting a specific geographic location for production, distribution, or other business activities. In this case, Mercedes-Benz likely chose Alabama as a location due to factors such as lower labor costs, access to transportation infrastructure, and potential tax incentives, all of which can contribute to cost savings and efficiency.

Step-by-step explanation: