In theory,a firm that realizes _______________ by dispersing each of its value creation activities to its optimal location should have a competitive advantage vis-à-vis a firm that bases all its value creation activities at a single location.
A) multidomestic strategies
B) site synergies
C) site commerce
D) geographical distinctiveness
E) location economies

Question

Quizplus · Accepted Answer

The concept described in the question is that of location economies. A firm that can disperse its value creation activities to their optimal location can achieve cost savings and efficiency gains, ultimately creating a competitive advantage over a firm that does not have this capability. Therefore, the best choice is E.

In Theory,a Firm That Realizes _______________ by Dispersing Each of Its