In competing in foreign markets,companies find it advantageous to concentrate their activities in a limited number of locations in all of these situations,except when
A)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).
B)the costs of manufacturing or other activities are significantly lower in some geographic locations than in others.
C)certain locations have superior resources,allow better coordination of related activities,or offer other valuable advantages.
D)there are significant economies of scale in performing an activity.
E)the addition of new production capacity will not adversely impact the supply-demand balance in the local market.

Question

Quizplus · Accepted Answer

Concentrating activities in a limited number of locations may not be advantageous if the addition of new production capacity will negatively affect the supply-demand balance in the local market. In such cases, it may be more beneficial to diversify production locations to satisfy local demand and avoid over-saturation of the market.

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