To Use Location to Build Competitive Advantage,a Company That Operates

question 24

Multiple Choice

To use location to build competitive advantage,a company that operates transnationally or globally must:

• A) employ either an export strategy or a franchising strategy.
• B) scatter its production plants across many countries in different parts of the world so as to minimize transportation costs.
• C) consider whether to concentrate each activity it performs in a few select countries or disperse performance of the activity to many nations and consider in which countries to locate particular activities.
• D) locate production plants in those countries having suppliers that can supply all the necessary raw materials and components so as to avoid inbound shipping costs.
• E) concentrate all of its value chain activities in a single country-the one that has the best combination of low wage rates,low shipping costs,and low tax rates on profits.

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Definitions:

Word Processing

The use of software to create, edit, and format textual documents, enhancing readability and presentation.

Voicemail Messaging

A technology that allows users to leave voice messages for others to retrieve and listen to at a later time.

Text Messaging

The act of sending short, alphanumeric messages between mobile devices over a cellular network.

Storage Limits

The maximum amount of digital data that can be stored in a specific space or on a platform.