When a company such as Nike wishes to pursue a comparative advantage strategy, it would have product designing and development and special material development
Conducted in the United States and _________________ operations conducted in
Labor-abundant countries like China or Brazil.
A) manufacturing
B) custom painting
C) testing
D) inventory
E) promotion

Question

Quizplus · Accepted Answer

Manufacturing operations typically involve the actual production of goods, and relocating this process to labor-abundant countries can often result in cost savings due to lower labor costs. This aligns with pursuing a comparative advantage strategy, where a company seeks to specialize in and produce goods more efficiently than other countries. Product designing, development, and special material development may still be conducted in the United States to maintain quality control and ensure that the final product meets the company's standards. Custom painting, testing, inventory, and promotion are all important aspects of a company's operations, but they do not directly relate to pursuing a comparative advantage strategy in the same way that manufacturing does.

When a Company Such as Nike Wishes to Pursue a Comparative