To Use Location to Build Competitive Advantage When Competing in Both

question 36

Multiple Choice

To use location to build competitive advantage when competing in both domestic and foreign markets,a company must

• A) scatter its production plants across many different country markets so as to minimize the costs of shipping to its own distribution centers and/or wholesalers/retail dealers.
• B) consider (1) whether to concentrate each activity it performs in a few select countries or to disperse performance of the activity to many nations and (2) in which countries to locate particular activities.
• C) concentrate buyer-related activities in a few well-chosen locations so as to maximize the capture of distribution-related scale economies.
• D) disperse both production and distribution activities across many nations in order to hedge against fluctuating exchange rates and lessen the risks of adverse political developments.
• E) avoid selling in countries where there are high trade barriers or where buyers purchase in small quantities.

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Definitions:

Finger Painting

An art form that involves using fingers to spread paint over a surface to create drawings or designs.

Additive Colour Mixing

A process of mixing colored lights in which the wavelength of the combined colors is the sum of the individual lights, resulting in white when combining all primary colors.

Primary Colours

The set of colors which can be combined to create a broad spectrum of colors, traditionally red, yellow, and blue in pigment, or red, green, and blue in light.

White Light

A type of light that contains all wavelengths of visible light, perceived by humans as colorless or having the color of daylight.