Dispersing Particular Value Chain Activities Across Many Countries Rather Than

question 13

Multiple Choice

Dispersing particular value chain activities across many countries rather than concentrating them in a select few countries can be more advantageous when

• A) buyer-related activities (such as sales,advertising,after-sale service and technical assistance)need to take place close to buyers.
• B) high transportation costs make it uneconomical to operate from one or just a few locations.
• C) it helps hedge against the risks of exchange rate fluctuations,supply disruptions,and adverse political developments.
• D) there are diseconomies of scale in trying to operate from a single location.
• E) All of these.

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Definitions:

Phineas Gage

A historically significant case in neuropsychology where an individual survived a traumatic brain injury, providing early evidence of the role of the frontal lobes in personality and behavior.

Modus Ponens

A form of logical argument where from premises in the form "If P, then Q" and "P is true," it logically follows that "Q is true."

Cognitive Overload

Breakdown of cognitive processing that occurs when the available information exceeds processing capacity.

Representativeness Heuristic

Representativeness Heuristic is a cognitive shortcut that involves judging the probability of an event by its similarity to a prototype.