Dispersing Value-Chain Activities Anywhere in the World Where the Company

question 14

Multiple Choice

Dispersing value-chain activities anywhere in the world where the company can do them best or cheapest refers to seeking

• A)The global-local dilemma.
• B)Comparative advantage of nations.
• C)Competitive advantage of firms.
• D)Locations advantages.

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Definitions:

Collection Float

The time period between when a payment is initiated by a debtor and when the funds are actually available to the creditor.

Transaction Motive

Refers to the need to hold cash for the purpose of conducting daily business transactions and operations.

Lockbox System

A service provided by banks to process payments by collecting and depositing checks into the company's account quickly.

NPV

Net Present Value (NPV) is a method used in capital budgeting to determine the value of an investment by calculating the present value of expected future cash flows using a specific discount rate.