The creation of a global web of value creation activities is the result of:

Question

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Location economies refer to the cost advantages that a company can achieve by locating its value chain activities in the optimal geographic locations. This can include access to skilled labor, natural resources, infrastructure, and market demand. As companies expand globally, they often seek to maximize location economies by creating a web of interconnected value creation activities across different countries and regions. This allows them to access critical resources and markets while minimizing costs and maximizing efficiency.

The Creation of a Global Web of Value Creation Activities