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