Dispersing the performance of value chain activities to many different countries rather than concentrating them in a few country locations tends to be advantageous

Question

Quizplus · Accepted Answer

Dispersing an internal process across many countries is more advantageous in some situations.Buyer-related activities,such as distribution to dealers,sales and advertising,and after-sale service,usually must take place close to buyers,making it necessary to physically locate the capability to perform such activities in every country market where a global firm has major customers.Dispersing activities to many locations is also competitively important when high transportation costs,diseconomies of large size,and trade barriers make it too expensive to operate from a central location or to hedge against the risks of fluctuating exchange rates and adverse political developments.

Dispersing the Performance of Value Chain Activities to Many Different