Location economies are the economies that arise from performing a value creation activity in the optimal location for that activity, wherever in the world that might be.

Matrix structures are challenging because:

A firm’s core competencies refer to those activities that are easily matched by competitors.

The actions that managers take to attain a firm’s goals represent a company’s value.

A localization strategy focuses on mass production of products to meet general tastes and preferences.

During the Bretton Woods negotiations, there was a consensus among the countries represented that floating exchange rates were preferred.

The inventory management system of a manufacturing company is an example of a support activity.

Under a currency board system, the government has the absolute authority to set interest rates and print money.

Pressures for local responsiveness may make it necessary for a company to place marketing functions within overseas subsidiaries.

Learning effects have less impact when the task is technologically complex.