Dispersing Particular Value Chain Activities Across Many Countries Rather Than

question 107

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 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.

---

Definitions:

Sedition Act

Legislation enacted by various countries at different times to prevent and punish actions perceived as promoting dissent or rebellion against the government.

Seditious Speech

Language that is aimed at inciting rebellion against a government or undermining its authority.

Federal Government

The national government of a federal country, where powers are divided between central governing bodies and various constituent entities, like states or provinces.

Haitian Revolution

A slave uprising that led to the establishment of Haiti as an independent country in 1804.