To Use Location to Build Competitive Advantage, a Company That

question 86

Multiple Choice

To use location to build competitive advantage, a company that operates transnationally or globally must

• A)employ either an export strategy or a franchising strategy.
• B)scatter its production plants across many countries in different parts of the world so as to minimize transportation costs.
• C)consider whether to concentrate each activity it performs in a few select countries or disperse performance of the activity to many nations and consider in which countries to locate particular activities.
• D)locate production plants in those countries having suppliers that can supply all the necessary raw materials and components so as to avoid inbound shipping costs.
• E)concentrate all of its value chain activities in the one country that has the best combination of low wage rates, low shipping costs, and low tax rates on profits.

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Definitions:

Preeclampsia

A pregnancy complication characterized by high blood pressure and signs of damage to another organ system, most often the liver and kidneys.

Proteinuria

The presence of abnormal amounts of protein in the urine, which can be a sign of kidney disease.

Edema

Swelling caused by excess fluid trapped in the body's tissues.

Heartburn

A burning sensation in the chest, just behind the breastbone, often occurring after eating due to acid reflux.