Facilities Location Quiz - True or False @ thine) @ or] (Hint) (iting) One factor affecting the country location decision is exchange rates. °° True False Intangible costs can be measured with precision. a o True False Manufacturing firms find it useful to be close to customers when transportation of finished goods is expensive. Guin True © False Manufacturing firms like to locate close to their suppliers when their production process reduces the bulk during production. © True © False@ (eine) ® {Hint} (tine) Clustering is when competing companies locate close to each other. ‘True © False One of the greatest challenges in a global operations decision is dealing with another country's culture. True False Proximity to suppliers is crucial for a pure service. 6 o True False The factor rating method is used to determine which location will result in the lowest transportation costs. ° True © Falsecaine) (a) (int) taint For the center of gravity method to work properly, the shipping cost must be directly proportional to both distance and volume shipped. cnn ‘True © False A geographic information system. has both demographic and topographic information in its database. Oo Tre © False By definition, a country with low wage rates must have higher productivity than a country with high wage rates. © te © False