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 to minimize shipping costs to its distribution centers and/or to 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 scale economies.
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.

Question

Quizplus · Accepted Answer

To use location to build competitive advantage when competing in both domestic and foreign markets, a company must consider whether to concentrate each activity it performs in a few select countries or to disperse performance of the activity to many nations, and in which countries to locate particular activities. This involves analyzing factors such as comparative costs, availability of resources, government regulations, infrastructure, and market access. By making strategic location decisions, a company can achieve cost savings, operational efficiencies, and access to key markets, which can help to build its competitive advantage both domestically and globally.

To Use Location to Build Competitive Advantage When Competing in Both