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Does a 'good strategy' necessarily have to create a competitive advantage?

1) True
2) False

1 Answer

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Final answer:

A 'good strategy' in business or economics does not necessarily have to create a competitive advantage, as comparative advantage can arise from many factors such as education, economies of scale, and specialized sectors.

Step-by-step explanation:

The question revolves around the concept of whether a 'good strategy' must always provide a competitive advantage. The answer to this question is false. A good strategy does not necessarily have to create a competitive advantage. When discussing economic strategies between countries, comparative advantage is often mentioned, which can result from a range of factors beyond natural elements like climate and mineral deposits. Aspects such as the level of education, knowledge base of professionals, specialized sectors of a value chain, and economies of scale can all contribute to comparative advantage. Additionally, it's possible for an economy to have a comparative advantage in producing a good without having an absolute advantage, indicating that strategy is about more than just leading the competition.

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