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
Question
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
Solution
The correct answer is C. Theory of Comparative Advantage. This theory suggests that a company should outsource activities to another firm if that firm can perform the tasks more productively.
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