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:

Vickery Auctions

Auctions where the highest bidder wins but pays the price bid by the second-highest bidder, encouraging true value bidding.

Highest Bidder

The party that offers the most significant amount of money for an item or service in an auction or competitive bidding context.

Second Highest Bid

In auctions, it is the bid that ranks immediately below the highest bid, often significant in auction types where the winner pays the amount of the second-highest bid.

Vickery Auctions

A type of sealed-bid auction where the highest bidder wins but pays the second-highest bid price, encouraging true valuation in bids.