Economies that arise from performing a value creation activity in the optimal location for that activity are called _____________.
A) site expediencies
B) location economies
C) site commerce
D) location synergies
E) offshore savings

Question

Quizplus · Accepted Answer

Location economies refer to cost savings or efficiencies that arise from performing an activity in the optimal location for that activity, such as lower labor or transportation costs, favorable tax or regulatory environments, or access to specialized skills or resources. Site expediencies, site commerce, location synergies, and offshore savings are not commonly used terms in international business or economics.

Economies That Arise from Performing a Value Creation Activity in the Optimal