What theory states that you should allow another firm to perform work activities for your company if that company can do it more productively than you can?
A) theory of competitive advantage
B) theory of core competencies
C) theory of comparative advantage
D) theory of outsourcing
E) theory of offshoring

Question

Quizplus · Accepted Answer

The theory of comparative advantage suggests that a company should outsource activities to another firm if that firm can perform those activities more efficiently or at a lower cost, allowing each firm to focus on what it does best.

What Theory States That You Should Allow Another Firm to Perform