To use location to build competitive advantage,a company that operates transnationally or globally must:
A) employ either an export strategy or a franchising strategy.
B) scatter its production plants across many countries in different parts of the world so as to minimize transportation costs.
C) consider whether to concentrate each activity it performs in a few select countries or disperse performance of the activity to many nations and consider in which countries to locate particular activities.
D) locate production plants in those countries having suppliers that can supply all the necessary raw materials and components so as to avoid inbound shipping costs.
E) concentrate all of its value chain activities in a single country-the one that has the best combination of low wage rates,low shipping costs,and low tax rates on profits.

Question

Quizplus · Accepted Answer

To use location to build competitive advantage, a company that operates transnationally or globally must consider whether to concentrate each activity it performs in a few select countries or disperse performance of the activity to many nations and consider in which countries to locate particular activities. This involves analyzing and understanding the advantages and disadvantages of each country's location-related factors, such as labor costs, transportation costs, taxes, and access to raw materials and suppliers. By strategically locating their activities, companies can achieve cost savings, access new markets, and enhance their competitiveness. The other options provided (A, B, D, and E) are not comprehensive and do not address the complexity and strategic thinking required in location-based competitive advantage.

To Use Location to Build Competitive Advantage,a Company That Operates