Companies that compete internationally can pursue competitive advantage in world markets (or offset domestic disadvantages) by
A. using an export strategy to circumvent the risks of adverse exchange rate fluctuations.
B. using a differentiation-based competitive strategy in those country markets with superior resources.
C. locating value chain activities in whatever nations prove most advantageous in a manner that uses location to lower costs or achieve greater product differentiation, allow for the transfer of competitively valuable competencies and capabilities from one country to another, and allow for cross-border coordination.
D. choosing not to compete in countries with high tariffs and high taxes (which then have to be passed along to buyers in the form of higher prices), thus keeping costs and prices lower than rivals.
E. employing a multidomestic strategy instead of a global strategy.
Answer: C
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