LOCATING ACTIVITIES TOBUILD A GLOBAL ADVANTAGE

LOCATING ACTIVITIES TOBUILD A GLOBAL ADVANTAGE

• Activities tend to be CONCENTRATED WHEN
  • Scale economies/experience curve effects exist
  • Coordination of related activities is enhanced
• DISPERSING activities works best WHEN
  • Buyer-related activities must take place close to buyers
  • Transportation costs, scale diseconomies, & trade barriers make centralization expensive
  • It buffers fluctuating exchange rates, supply interruptions, & adverse political developments

Previous slide

Next slide

Back to the first slide

View Graphic Version