Dispersing the performance of value chain activities to many different countries rather than concentrating them in a few country locations tends to be advantageous
A) when high transportation costs make it expensive to operate from central locations.
B) whenever buyer-related activities are best performed in locations close to buyers.
C) if diseconomies of large size exist,thereby making it more economical to perform an activity on a smaller scale in several different locations.
D) when it is desirable to hedge against (1)the risks of fluctuating exchange rates,(2)supply interruptions or (3)adverse political developments.
E) All of these.

Question

Quizplus · Accepted Answer

All of the listed reasons are advantages of dispersing the performance of value chain activities to many different countries rather than concentrating them in a few country locations. High transportation costs, close proximity to buyers, diseconomies of large size, hedging against risks such as fluctuating exchange rates, supply interruptions, and adverse political developments are all factors that favor this strategy.

Dispersing the Performance of Value Chain Activities to Many Different