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:

Redundancies

Unnecessary repetitions or overlaps in roles, functions, or information, often leading to inefficiency.

Redundancy

The situation where an employee's position is no longer needed, leading to their dismissal, often due to organizational restructuring.

Redundancies

The occurrence of unnecessary duplications, often in the context of information, data, or employment positions.

Readability

The ease with which text can be read and understood, influenced by factors such as font size, sentence length, and complexity.