A firm benefits by basing each value creation activity it performs at that location where economic, political, and cultural conditions, including relative factor costs, are most conducive to the performance of that activity. Firms that pursue such a strategy can realize
A) differentiation.
B) location economies.
C) vertical integration.
D) horizontal integration.

Question

Quizplus · Accepted Answer

For a firm that is trying to survive in a competitive global market, this implies that trade barriers and transportation costs permitting, the firm will benefit by basing each value creation activity it performs at that location where economic, political, and cultural conditions, including relative factor costs, are most conducive to the performance of that activity.

A Firm Benefits by Basing Each Value Creation Activity It