To Use Location to Build Competitive Advantage When Competing in Both

question 92

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 to 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.

Recognize the correct format for citing cases, statutes, and legal authorities.

Understand the characteristics of monopolistic competition, including product differentiation and market power.

Analyze the long-run equilibrium in monopolistic competition, particularly zero economic profits and inefficiencies.

Explain the impact of brand loyalty and demand elasticity on monopolistic competition.

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Definitions:

One-way Communication

A form of communication where a message is sent from a sender to a receiver without expecting or receiving a response or feedback.

Impression Management

Is the systematic attempt to influence how others perceive us.

Nonverbal Aspects

Elements of communication that do not involve words, such as gestures, facial expressions, and body language.

Two-way

A form of communication that involves not just sending messages but also receiving and effectively responding to them, fostering a dialogue.