To Use Location to Build Competitive Advantage When Competing in Both

question 27

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 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 economies of scale.
• 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.

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Definitions:

Belief Perseverance

The phenomenon where people maintain their convictions even after the evidence on which those beliefs were based has been refuted.

Traumatic Events

Incidents that cause psychological, physical, or emotional harm or distress, often leading to long-term effects on the individual's well-being.

Coping Mechanisms

Psychological strategies that individuals employ to manage stress, adversity, or trauma, aiming to minimize negative emotional responses.

Embodied Attitudes

The concept that attitudes and opinions are reflected through one's physical actions and postures, suggesting a deep interconnection between body and mind.