Dispersing particular value chain activities across many countries rather than concentrating them in a select few countries can be more advantageous when

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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 Particular Value Chain Activities Across Many Countries Rather Than