Question

JumpIn Products is a market leader in playground equipment, which is typically large, bulky, and very heavy. In order to compete, JumpIn Products sells its entire line at very low prices. Although its products can be produced anywhere, it is considering exporting as a way to grow in overseas markets. The viability of JumpIn Products' exporting strategy could be constrained by transportation costs, particularly of products that can be produced in almost any location and have aMultiple Choice1. high local content requirement.2. low total landed cost.3. low value-to-weight ratio.4. low licensing tariff.5. high marginal cost.

Answer 1

Answer:

3. Low value-to-weight ratio.  

Explanation:

Value to weight ratio is a measure under supply chain management which represents the monetary value of a product per kilogram or pound.

This is amongst the most important factors which determine a product's shipping to different markets and consumers and also determine the modes of shipping.

A low value to weight ratio conveys that products should rather be manufactured at the different markets instead of shipping them and incurring a higher cost. For example, paints have low value to weight ratio.

In the given case, Jumpin products produce heavy weight playground equipment.  It can choose to produce such products elsewhere rather than shipping such products and incurring heavy costs. The company's exporting strategy can be affected by the transportation costs involved as well as low value to weight ratio.