Final answer:
The statement is false; while MBO provides performance standards, they are specific to organizational goals and are not meant for common comparison across different entities.
Step-by-step explanation:
The statement "MBO provides performance standards that facilitate a common basis for comparison" is False. MBO, or Management by Objectives, is a strategic management model that aims to improve the performance of an organization by clearly defining objectives that are agreed upon by both management and employees. However, the information provided from Chapter 19 suggests that anything leading to different levels of productivity between two economies can be a source of comparative advantage or difference, not a basis for common comparison. Therefore, while MBO does provide performance standards, these standards are designed to be tailored to individual organizational goals and are not necessarily established for the purpose of enabling a common basis for comparison across different entities.