Dispersing the performance of value chain activities to many different countries rather than concentrating them in a few country locations tends to be advantageous in all of the following situations, except
A)when high transportation costs make it expensive to operate from central locations.
B)whenever buyer-related activities are best performed in locations close to buyers.
C)if diseconomies of large size exist, thereby making it more economical to perform an activity on a smaller scale in several different locations.
D)when it is desirable to hedge against (1)the risks of fluctuating exchange rates, (2)supply interruptions, or (3)adverse political developments.
E)if resources retain their foreign contexts so there is competitive advantage over a broader domain.

Question

Quizplus · Accepted Answer

Explanation: Dispersing value chain activities across different countries is generally advantageous for reasons such as reducing transportation costs, being closer to buyers, avoiding diseconomies of scale, and hedging against various risks. However, the statement in option E, regarding resources retaining their foreign contexts for competitive advantage, does not directly relate to the advantages of dispersing activities. It suggests a scenario where maintaining a specific foreign context or attribute is beneficial, which does not inherently justify dispersing activities across many countries.

Dispersing the Performance of Value Chain Activities to Many Different