In competing in foreign markets, companies find it advantageous to concentrate their activities in a limited number of locations in all of these situations, EXCEPT when
A) there are significant scale economies in performing an activity.
B) the costs of manufacturing or other activities are significantly lower in some geographic locations than in others.
C) when there is a steep learning or experience curve associated with performing an activity in a single location (thus making it economical to serve the whole world market from just one or maybe a few locations) .
D) certain locations have superior resources, allow better coordination of related activities, or offer other valuable advantages.
E) the addition of new production capacity will not adversely impact the supply-demand balance in the local market.
Correct Answer:
Verified
Q80: A global strategy is one in which
Q81: To use location to build competitive advantage,
Q82: Companies often implement a transnational strategy because
Q84: Dispersing particular value chain activities across many
Q86: Sharing and transferring resources and capabilities across
Q87: In expanding into foreign markets, a company
Q89: A key approach for a company to
Q97: Companies that compete internationally can pursue competitive
Q98: What strategy is considered more conducive to
Q99: When concentrating production in a few locations,
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents