The Competitive Advantage Opportunities That a Global Competitor Can Gain

question 63

Multiple Choice

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

• 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) All of these.

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Definitions:

India Rupee

The India Rupee (INR) is the official currency of India, used as the medium of exchange within the country.

Fair Value Hedge

A hedging strategy used to protect against changes in the fair value of assets or liabilities.

Account Payable

The amount of money owed by a company to its creditors for goods or services that have been delivered or used, but not yet paid for.

Call Option

A financial contract that gives the holder the right, but not the obligation, to buy an underlying asset at a specified price within a specific time period.