Dispersing particular value chain activities across many countries rather than concentrating them in a select few countries can be more advantageous except when
A. buyer-related activities (such as sales, advertising, after-sale service and technical assistance) need to take place close to buyers.
B. buyers demand 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. there are diseconomies of scale in trying to operate from a single location.
E. there are reasons to decouple buyer-related activities in favor of locational advantages.
Answer: there are reasons to decouple buyer-related activities in favor of locational advantages.