Global coordination of all of the major business functions permits 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

Global coordination of all major business functions allows businesses to leverage their comparative advantage, which refers to their ability to produce a specific product or service more efficiently or at a lower cost compared to other countries. By locating business activity in areas where they have a comparative advantage, businesses can increase efficiency, reduce costs, and ultimately increase profits. Social norms and values, competitive threats, knowledge base, and labor costs are all important factors to consider when locating business activity, but comparative advantage is the most important factor for global coordination.

Global Coordination of All of the Major Business Functions Permits