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

question 83

Multiple Choice

To use location to build competitive advantage,a company that operates multinationally 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 (1) whether to concentrate each activity it performs in a few select countries or disperse performance of the activity to many nations and (2) 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:

Residual Dividend

A policy under which a company pays dividends to its shareholders only after all its capital needs are met for a particular period.

Compromise Dividend

A dividend payment agreed upon by a company and its shareholders to be distributed, usually under circumstances where the payment amount may not meet all parties’ expectations but is deemed acceptable.

Dividend Policy

Refers to the strategy a company uses to determine how much it will pay out to shareholders in dividends.

Time Pattern

The distribution or sequence of events, actions, or changes over time, often analyzed in various contexts such as financial planning or project scheduling.