The Competitive Advantage Opportunities That a Global Competitor Can Gain

question 127

Multiple Choice

The competitive advantage opportunities that a global competitor can gain by dispersing performance of its activities across many nations include all of the following Except:

• A) being able to shift production from one country to another to take advantage of exchange rate fluctuations,differing wage rates,differing energy costs,or differing trade restrictions.
• B) being in better position to choose where and how to challenge rivals.
• C) shortening delivery times to customers by having geographically scattered distribution facilities.
• D) locating buyer-related activities (such as sales,advertising,after-sale service and technical assistance)close to buyers.
• E) centralizing value chain activities to foster just-in-time inventory activities.

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Definitions:

Utility Maximization

The economic principle that individuals or firms strive to get the greatest satisfaction or benefit from their available resources.

Marginal Utility

The enhanced gratification or value a customer derives from consuming another unit of a good or service.

Utility Equilibrium

A state in consumer theory where a consumer efficiently allocates their income to maximize their total utility.

Marginal Utility Data

Marginal utility data refers to information that describes the change in utility or satisfaction a consumer derives from consuming one additional unit of a good or service.