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:

Federal Government Legislation

Laws and regulations enacted by the national government of a country.

Earmarks

Provisions within legislation that allocate funds to specific projects, often bypassing the competitive or merit-based allocation process.

Authorized Expenditures

Expenses that have been approved for payment under the terms of a contractual agreement or budgetary consideration.

Spending Legislation

Legislation that dictates how government funds are to be spent, often detailing specific allocations for public sector initiatives and programs.