Under What Circumstances Is It Advantageous for a Company Competing

question 7

Essay

Under what circumstances is it advantageous for a company competing in foreign markets to concentrate its value chain activities in a select few locations?

---

Definitions:

Purchases Budget

A financial plan that estimates the amount of goods or inventory a business needs to buy over a certain period to meet its sales goals.

Production Budget

An estimation of the total output a company needs to meet its sales goals and inventory policies, expressed in units or monetary terms.

Merchandising Companies

Companies that purchase goods in finished form for resale to consumers, generating revenue primarily from the sale of merchandise.

Direct Materials Budget

A financial plan that estimates the quantity and cost of direct materials needed to meet production requirements.