When companies disperse different stages of the value chain to those locations around the world where perceived value is maximized or where the costs of value creation are minimized, companies create: a differentiated organization. a location economy curve. economies of scale. a global web of value creation activities.

Question

Harmony Sanford

Business

3 January, 23:12

When companies disperse different stages of the value chain to those locations around the world where perceived value is maximized or where the costs of value creation are minimized, companies create: a differentiated organization. a location economy curve. economies of scale. a global web of value creation activities.

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Julio Aguirre · Answer 1

The companies create a global web of value creation activities.

Explanation:

When the companies with the motive to maximize revenue or minimize cost disperse their operation across the globe they create a chain or web of value creation activities globally.

Multinational companies take advantage of location economies by dispersing their activities. When a firm operates in foreign countries they hire inputs for their work thus paying for them, in this way they create a web of activities boosting the economy of that place.