Downshift Autos Inc. has shifted its research and development unit from its home country to Germany. This allows the company to be better informed about the latest developments in the automotive industry by tapping into the highly advanced automotive industry in Germany. In this scenario, Downshift Autos Inc. is reaping the benefits of
A) economies of scope.
B) location economies.
C) resource immobility.
D) resource ambiguity.

Question

Quizplus · Accepted Answer

In this scenario, Downshift Autos Inc. is reaping the benefits of location economies. Location economies are benefits from locating value chain activities in the world's optimal geographies for a specific activity, wherever that may be.