Dispersing the Performance of Value Chain Activities to Many Different

question 93

Multiple Choice

Dispersing the performance of value chain activities to many different countries rather than concentrating them in a few country locations tends to be advantageous in all of the following situations, EXCEPT

• A) when high transportation costs make it expensive to operate from central locations.
• B) whenever buyer-related activities are best performed in locations close to buyers.
• C) if diseconomies of large size exist, thereby making it more economical to perform an activity on a smaller scale in several different locations.
• D) when it is desirable to hedge against (1) the risks of fluctuating exchange rates, (2) supply interruptions or (3) adverse political developments.
• E) if resources retain their foreign contexts so there is competitive advantage over a broader domain.

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Definitions:

Inbreeding

In a professional context, the practice of repeatedly selecting internal candidates for vacancies, which can limit diversity and fresh ideas.

Recruiting Process Outsourcing

The practice of outsourcing an organization’s recruiting function to an outside firm

Core Functions

Fundamental activities or duties that are central to the purpose or operation of an organization or job position.

Small Businesses

Enterprises with a small number of employees and relatively low volume of sales, typically privately owned and operated.