Which of the following is listed as an advantage of global manufacturing?

• A. Cheaper manufacturing costs
• B. Global supply chain
• C. Manufacturing near raw materials
• D. More centralised location for product market

Answer: (A)

Global manufacturing is driven by lowering production costs across the entire operation. By locating production in regions with cheaper labor, lower material costs, favorable energy prices, and supportive policies, a company can reduce the unit cost of making each product. This cost reduction directly boosts competitiveness and profitability, which is why cheaper manufacturing costs is the best-listed advantage.

Other aspects can come into play in a global network—for example, having a broad supply base can improve resilience and sourcing options, but it also adds complexity and risk. Being near raw materials might cut transport for some items, yet total costs aren’t guaranteed to be lower if other inputs are expensive or if logistics outweigh the savings. Centralizing production near product markets runs counter to the global approach, which aims to optimize across multiple regions rather than concentrate in one spot.