In competing in foreign markets,companies find it advantageous to concentrate their activities in a limited number of locations 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) 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) All of these.

Question

Quizplus · Accepted Answer

All of these factors, including significant scale economies, lower costs in certain geographic locations, steep learning or experience curves, and superior resources or coordination advantages, can make it advantageous for companies to concentrate their activities in a limited number of locations when competing in foreign markets. By focusing their efforts and resources in specific locations, companies can often achieve greater efficiencies, reduce costs, and more effectively serve global markets.

In Competing in Foreign Markets,companies Find It Advantageous to Concentrate