Dispersing particular value chain activities across many countries rather than concentrating them in a select few countries can be more advantageous when
A) buyer-related activities (such as sales, advertising, after-sale service and technical assistance) need to take place close to buyers.
B) buyers demand short delivery times and/or high transportation costs make it uneconomical to operate from one or just a few locations.
C) it helps hedge against the risks of exchange rate fluctuations, supply disruptions, and adverse political developments.
D) there are diseconomies of scale in trying to operate from a single location.
E) All of these.

Question

Quizplus · Accepted Answer

Dispersing particular value chain activities across many countries can be advantageous in all of the scenarios described in the options, including when buyer-related activities need to take place close to buyers, buyers demand short delivery times and/or high transportation costs make it uneconomical to operate from one or just a few locations, it helps hedge against the risks of exchange rate fluctuations, supply disruptions, and adverse political developments, and when there are diseconomies of scale in trying to operate from a single location. Therefore, the best choice is E, all of these.

Dispersing Particular Value Chain Activities Across Many Countries Rather Than