Dispersing Particular Value Chain Activities Across Many Countries Rather Than

question 82

Multiple Choice

Dispersing particular value chain activities across many countries rather than concentrating them in a select few countries can be more advantageous, except when

• A)buyer-related activities (such as sales, advertising, after-sale service, and technical assistance)need to take place close to buyers.
• B)buyers' demand for short delivery times and/or high transportation costs make it uneconomical to operate from one or just a few locations.
• C)it helps hedge against the risks of exchange rate fluctuations, supply disruptions, and adverse political developments.
• D)there are diseconomies of scale in trying to operate from a single location.
• E)there are reasons to decouple buyer-related activities in favor of locational advantages.

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Definitions:

Basic Unit

The fundamental component or building block within a structured set, often referring to the simplest division in a system's hierarchy.

Cooperative Work

Efforts undertaken jointly by a group of people or entities to achieve a common goal, often emphasizing teamwork and shared responsibilities.

Nuclear Family

A household composed of two parents and their offspring, cohabiting as one family unit.

Household

A social unit consisting of those living together in the same dwelling, often encompassing members of a family or a group of people sharing living quarters and responsibilities.