BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Certain locations have:superior resources and allow better coordination of related activities
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They need to be performed close to buyers
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Costs of manufacturing or other value chain activities are meaningfully lower in certain locations than in others
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There are sizable scale economies in performing the activity
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Detailed explanation-1: -A dispersed global value chain implies the replication of activities country by country, making multinational units operate independently.
Detailed explanation-2: -Porter identified four supporting factors in a value chain: Infrastructure, human resources, technology development and procurement. Infrastructure and technology development essentially relate to build-up and development of buildings, equipment, supplies and technology to support ongoing business activities.
Detailed explanation-3: -The configuration of value chains is related to the market segments they are servicing and to what extent consolidation and economies of scale are achievable. One-to-one. Involves supply chains characterized by a few large suppliers and consumers, such as for energy and mining products.