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

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

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 3.8A

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