If a Value Creation Activity of a Firm Can Take

question 23

Multiple Choice

If a value creation activity of a firm can take place in Mexico most effectively, then that activity of the firm must be based in Mexico. Firms that pursue such a strategy are most likely to realize:

• A)a position inside the efficiency frontier.
• B)the experience curve.
• C)economies of scale.
• D)location economies.
• E)demographic advantages.

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Definitions:

Four-Drive Theory

A motivational theory proposing that human beings are driven by four fundamental needs or drives: the drive to acquire, bond, learn, and defend.

Social Norms

Social norms are the accepted behaviors, values, and conventions that govern the behavior of individuals within a group or society.

Past Experience

Previous events or knowledge gained through earlier involvement in similar or related activities, influencing one's current behavior and decisions.

Emotional Signals

Expressions or manifestations of one's feelings that communicate emotional states to others, often non-verbally.