Companies focus activities in restricted number of locations
What are the conditions when companies focus activities in a restricted number of locations?
Expert
Companies tend to focus their activities in a restricted number of locations in the given conditions:
i. When the costs of manufacturing or other activities are considerably lower in some geographic places than in others.
ii. When there are important scale economies.
iii. When there is a steep learning curve linked with performing an activity in a sole place.
iv. When certain locations have better resources, permit better coordination of related activities, or offer other important benefits.
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