In Competing in Foreign Markets, Companies Find It Advantageous to Concentrate

question 64

Multiple Choice

In competing in foreign markets, companies find it advantageous to concentrate their activities in a limited number of locations in all of these situations, EXCEPT when

• A) there are significant scale economies in performing an activity.
• B) the costs of manufacturing or other activities are significantly lower in some geographic locations than in others.
• C) when there is a steep learning or experience curve associated with performing an activity in a single location (thus making it economical to serve the whole world market from just one or maybe a few locations).
• D) certain locations have superior resources, allow better coordination of related activities, or offer other valuable advantages.
• E) the addition of new production capacity will not adversely impact the supply-demand balance in the local market.

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Definitions:

Retirement Plan

A financial arrangement designed to replace employment income upon retirement, often including contributions from both employer and employee.

Benefits Packages

A collection of non-wage compensations such as medical insurance, pensions, and vacation time offered to employees.

Competitive Labor Market

A market in which there are many employers seeking to hire and many workers seeking employment, leading to competition among employers for employees and vice versa.

Unemployment Insurance

A government program that provides financial assistance to eligible workers who lose their jobs and meet certain requirements.