Question: Dispersing particular value chain activities across many countries rather than concentrating them in a select few countries can bet more advantageous, except when Multiple Choice
Dispersing particular value chain activities across many countries rather than concentrating them in a select few countries can bet more advantageous, except when
Multiple Choice
buyers' demand for short delivery times andor high transportation costs make it uneconomical to operate from one or just a few locations.
there are reasons to decouple buyerrelated activities in favor of locational advantages.
it helps hedge against the risks of exchange rate fluctuations, supply disruptions, and adverse political developments.
there are diseconomies of scale in trying to operate from a single location.
buyerrelated activities such as sales, advertising, aftersale service, and technical assistance need to take place close to buyers.
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