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Dispersing Activities to Many Locations Is Competitively Advantageous When

Question 105

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Dispersing activities to many locations is competitively advantageous when


A) high transportation costs, diseconomies of large size, and trade barriers make it too expensive to operate from a central location.
B) a multidomestic strategy is better than a global strategy.
C) technical after-sale services are unimportant to buyers.
D) achieving economies of scale and scope in materials procurement, parts manufacture, finished-goods assembly, technology research, and new product development can frequently be decoupled from buyer locations and performed wherever advantage lies.
E) host governments offer less restrictive trade barriers and regulatory requirements to companies that conform to local business practices.

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