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.

Correlate the chemical properties of minerals with their practical uses.

Understand the definitions and key characteristics of projects, including their temporary nature and specific objectives.

Recognize the importance and applications of project management tools like Gantt charts, PERT networks, and flow charts in planning and executing projects.

Identify the roles and skills effective project managers must possess, such as leadership, communication, and strategic thinking.

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Definitions:

Equilibrium

A state where supply and demand are balanced, and in the absence of external influences, the values of economic variables will not change.

Total Revenue

The total receipts from sales of goods or services before any expenses are deducted.

Price

The amount of money required to purchase a product or service, set by the interaction of supply and demand.

Perfectly Elastic

A market situation where a small change in price leads to an infinite change in the quantity demanded or supplied.