In Which of the Following Circumstances Is It Advantageous for a Multinational

question 17

Multiple Choice

In which of the following circumstances is it advantageous for a multinational competitor to concentrate its activities in a limited number of locations in order to build competitive advantage?

• A) When the costs of performing certain value chain activities are significantly lower in certain geographic locations than in others.
• B) When a company has competitively superior patented technology that it can license to foreign partners.
• C) When there is a steep learning or experience curve associated with performing an activity in a single location.
• D) When certain locations have superior resources,allow better coordination of related activities,or offer other valuable advantages.
• E) When there are significant scale economies in performing the activity.

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