Dispersing the Performance of Value Chain Activities to Many Different

question 2

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) if 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) or (2) supply interruptions (due to strikes, mechanical failures, or transportation delays) or (3) adverse political developments.
• E) All of the above.

---

Definitions:

Trust-Busting

The practice of government efforts to break up corporate monopolies and ensure competition in the marketplace.

William Howard Taft

The 27th President of the United States (1909-1913) known for his role also as the 10th Chief Justice of the U.S. Supreme Court, making him the only person to have held both offices.

Progressive President

Refers to U.S. Presidents who have implemented reforms aimed at addressing social injustice, economic inequality, and corruption in government.