In competing in foreign markets, companies find it advantageous to concentrate their activities in a limited number of locations in all of these situations, except when
A. there are significant scale economies in performing an activity.
B. the addition of new production capacity will not adversely impact the supply-demand balance in the local market.
C. certain locations have superior resources, allow better coordination of related activities, or offer other valuable advantages.
D. the costs of manufacturing or other activities are significantly lower in some geographic locations than in others.
E. when there is a steep learning or experience curve associated with performing an activity in a single location (thus making it economical to serve the whole world market from just one or maybe a few locations).
Answer: B
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