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:

Network-designed Organizations

Organizations structured around flexible, adaptive networks rather than traditional hierarchical models to promote efficiency and innovation.

Production Process

The production process involves the methods and procedures used to transform raw materials into finished goods or services.

Vertical Parts

Components or sections of an organization that are arranged in a hierarchy or rank, often signifying different levels of authority or responsibility.

Organization

A structured group of people with a specific purpose, such as a business, government agency, or charity.