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What is the most likely reason for an Australian clothing business choosing to manufacture locally? A - HSC - SSCE Business Studies - Question 7 - 2020 - Paper 1

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What is the most likely reason for an Australian clothing business choosing to manufacture locally? A. To achieve cost leadership B. To maintain quality control ... show full transcript

Worked Solution & Example Answer:What is the most likely reason for an Australian clothing business choosing to manufacture locally? A - HSC - SSCE Business Studies - Question 7 - 2020 - Paper 1

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What is the most likely reason for an Australian clothing business choosing to manufacture locally?

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The most likely reason for an Australian clothing business to manufacture locally is B. To maintain quality control.

Manufacturing locally allows for higher oversight of production processes and ensures that the quality of materials and labor meets the company's standards. This is particularly important in the clothing industry, where quality can significantly affect brand reputation and customer satisfaction.

In contrast, other options such as achieving cost leadership or taking advantage of lower overseas wages might lead to lower costs, but they often compromise quality. Therefore, maintaining quality control is often the paramount consideration for local manufacturers.

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