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:

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Sensory-Specific Satiety

The reduced satisfaction or interest in a specific taste or type of food after consuming a significant amount of it, leading to a desire for flavor variety.

Mental Accounting

The cognitive process by which people categorize, evaluate, and keep track of financial activities, often leading to irrational financial behaviors.

Variety Seeking

The behavior exhibited by consumers who seek new and different experiences or products, often driven by a desire for novelty or change.