In Which of the Following Circumstances Is It Not Advantageous

question 99

Multiple Choice

In which of the following circumstances is it not advantageous for a multinational competitor to concentrate its activities in a limited number of locations in order to build competitive advantage?

• A) When the costs of performing certain value chain activities are significantly lower in certain geographic locations than in others
• B) When a company has competitively superior patented technology that it can license to foreign partners
• C) When there is a steep learning or experience curve associated with performing an activity in a single location
• D) When certain locations have superior resources, allow better coordination of related activities, or offer other valuable advantages
• E) When there are significant scale economies in performing the activity

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Definitions:

Production Possibilities Frontier

An outline that conveys the peak output possibilities for two products, relying on a compilation of inputs that incorporate resources and other factors.

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Professionals who study the production, distribution, and consumption of goods and services, focusing on factors that influence economic decision-making.

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Professionals who engage in systematic activity to acquire knowledge that describes and predicts the natural world.