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:

Labor Demand Curve

A graphical representation that illustrates the quantity of labor that employers are willing and able to hire at different wage rates.

Marginal Labor Cost

The additional cost incurred by hiring an extra unit of labor.

Nominal Wage

Nominal wage refers to the wage paid to employees in current money terms, without adjustment for inflation.

Real Wage

The purchasing power of wages, considering inflation; it reflects the quantity of goods and services wages can buy.