Myers Inc. manufactures biodegradable bottles. Since this is a patented method ofproducing environmentally-friendly plastic, they cannot use an overseas contractor.They will make the products in the United States. What criteria would you use toassess their business model?O The production expertise scale will tell if the company is ready to partake in such a venture.O The fixed costs need to be compared to other similar companies in the U.S. Thestandardization of the product is making it more expensive to produce, as the copyrightsare implemented.O Since the product will be outsourced, the manager needs to assess the simplicity of thesupply chain. Even though the manufacturing costs are high, the transportation costs will below.O The minimum efficient scale will tell the minimum volume they need to produce to reacheconomies of scale. The quality of the in-house product needs to be constantly inspected,as they will not use outside sourcing.

Answered: vironmentally- ke the product:

Business

Accounting

vironmentally- ke the product:

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter13: Direct Foreign Investment

Section: Chapter Questions

Problem 18QA

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