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One capability characteristic of a firm with strategic flexibility is the capacity to learn.True/False

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Final answer:

The capacity to learn is indeed characteristic of a firm with strategic flexibility, which is key in adapting to changes and improving productivity in intra-industry trade.

Step-by-step explanation:

True. One capability characteristic of a firm with strategic flexibility is indeed the capacity to learn. Firms that exhibit strategic flexibility have the ability to embrace new knowledge, adapt to changing competitive landscapes, and overcome challenges by learning and applying new skills. Specifically, in the context of intra-industry trade, a firm's ability to gain productivity stems from how it engages in specialized learning related to its products and benefits from economies of scale, rather than being determined by fixed factors such as geography or general education levels. Strategic flexibility can thus enhance a firm's dynamic comparative advantage, which evolves as the business develops new capabilities and responds to shifts in the global market.

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