Under What Circumstances Is It Advantageous for a Company Competing

question 7

Essay

Under what circumstances is it advantageous for a company competing in foreign markets to disperse certain value chain activities across many countries?

---

Definitions:

Facility-level Costs

Expenses that are not directly tied to a specific product or service but are necessary for the overall operation of a facility.

Overhead Cost

Indirect expenses related to the day-to-day running of a business, such as rent, utilities, and administrative costs.

Batch Level Activities

Activities and costs incurred for a group of products rather than individual units or processes.

Facility Level Activities

Operations and tasks that support the entire organization and are not tied to a specific product or service.