Dispersing activities to many locations is competitively advantageous when
A. high transportation costs, diseconomies of large size, and trade barriers make it too expensive to operate from a central location.
B. host governments offer less restrictive trade barriers and regulatory requirements to companies that conform to local business practices.
C. technical after-sale services are unimportant to buyers.
D. a multidomestic strategy is better than a global strategy.
E. achieving economies of scale and scope in materials procurement, parts manufacture, finished-goods assembly, technology research, and new product development can frequently be decoupled from buyer locations and performed wherever advantage lies.
Answer: A
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