Question

Cadillac is preparing to build a new assembly plant in the United States. Although it would be slightly cheaper to build cars in Michigan, the company decides to place the factory in Louisiana, which is closer to the region where the cars are in greater demand. The overall result is faster delivery on average and lower delivery costs. Cadillac is responding to what environmental trend?
A) One of the geographic demographic trends in the United States has been migration into the Sun Belt. Building a plant in Louisiana, which is in the Sun Belt, would greatly reduce transportation cost, compared to a plant in Michigan.
B) The fact that more baby boomers live in the Midwest is irrelevant; the question states that demand is greater in the region close to Louisiana.
C) Cultural diversity is not a factor in Cadillac's decision. They are basing their decision on where the demand is greater.
D) Just-In-Time inventory is not an environmental trend. It is a inventory delivery process that can be controlled by the company.
E) While this is an environmental trend, it has nothing to do with where Cadillac decides to build their new plant.

Answer 1

Answer:

A

Explanation:

Cadillac is responding to one of the geographic demographic trends in the United States, which has been migration into the Sun Belt. Building a plant in Louisiana, which is in the Sun Belt, would greatly reduce transportation cost, compared to a plant in Michigan.