From a profit perspective, it makes sense for firms to disperse their productive activities to those countries where they can be performed most efficiently.

Question

Quizplus · Accepted Answer

Underlying most trade theories is the notion that different countries have particular advantages in different productive activities. Thus, from a profit perspective, it makes sense for a firm to disperse its productive activities to those countries where, according to the theory of international trade, they can be performed most efficiently.

From a Profit Perspective, It Makes Sense for Firms to Disperse