New levels of global coordination of all of the major business functions permit the location of business activity according to:
A)comparative advantage.
B)social norms and values.
C)competitive threat.
D)knowledge base.
E)labor costs.

Question

Quizplus · Accepted Answer

The coordination of major business functions allows businesses to locate their activities according to comparative advantage. This means that companies can assess their strength and weakness in certain areas and then locate their business activities in areas where they have a comparative advantage. For example, if a company has a comparative advantage in manufacturing, they may locate their factories in a country where labor costs are low to take advantage of cost savings, while if they have a comparative advantage in research and development, they may locate their research centers near universities to attract highly skilled researchers.

New Levels of Global Coordination of All of the Major