Dispersing the Performance of Value Chain Activities to Many Different

question 43

Multiple Choice

Dispersing the performance of value chain activities to many different countries rather than concentrating them in a few country locations tends to be advantageous

• A) when high transportation costs make it expensive to operate from central locations.
• B) whenever buyer-related activities are best performed in locations close to buyers.
• C) when diseconomies of large size exist,thereby making it more economical to perform an activity on a smaller scale in several different locations.
• D) when it is desirable to hedge against (1) the risks of fluctuating exchange rates (such risks are greater when activities are concentrated in a single location); (2) supply interruptions (due to strikes,mechanical failures,or transportation delays); or (3) adverse political developments.
• E) All of these choices are correct.

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Definitions:

Chunking

A memory technique that involves grouping individual pieces of information into larger units to improve recall.

Rote Rehearsal

A memorization technique based on repetition, where information is repeatedly gone over in the same form to be remembered.

Cueing

The process of signaling or prompting that takes place to guide behavior, attention, or processing towards a specific target or direction.

Shadowing

A technique used in cognitive psychology and language learning where a participant repeats speech immediately after hearing it to study attention and language processing.