In Which of the Following Circumstances Is It Not Advantageous

question 56

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 a 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 economies of scale in performing the activity

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Definitions:

Incomplete

Characterizing something as not fully finished, lacking some parts, or not comprehensive.

Transitive

A relation is described as transitive if, whenever it relates some A to B and B to C, it also relates A to C.

Marginal Rate of Substitution

The rate at which a consumer is willing to give up one good in exchange for another good while maintaining the same level of utility or satisfaction.

Perfect Substitutes

Two goods for which consumers are completely indifferent as to which to consume, meaning the consumption of one good can fully replace consumption of the other.