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Organisational Planning tool
a) Opportunity cost refers cost calculated in terms of the next best alternative choice that is predetermined when a decision is made. In this case, the opportunity cost to Peckham Traders Ltd. in selecting to locate in Kazakhstan would be the inevitable opportunities that could be reaped if it located in South Korea (and vice versa).Subtract one mark for each error (but award according to the Own Figure Rule) grant maximum marks only if the candidate shows which of the two options is the best choice, i.e. South Korea.
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