Final answer:
It is true that sharing rewards for improvements with suppliers can induce performance enhancements such as reduced lead time. The incentive of shared benefits encourages suppliers to contribute to productivity, benefiting both parties and potentially creating a comparative advantage in international trade contexts.
Step-by-step explanation:
The statement that sharing the rewards from improvements can induce performance improvement from a supplier along dimensions such as lead time is true. When a buyer shares the benefits of improvements with a supplier, there is a greater incentive for the supplier to invest in enhancements, even if the primary effort for improvement comes from the supplier's side. Improvements in lead time, quality, or cost may primarily benefit the buyer, but when suppliers are rewarded for their efforts, they are likely to be more motivated to strive for these enhancements.
In the context of international trade, dimensions like lead time, product quality, and cost efficiency can contribute to a country's comparative advantage. When firms are splitting up the value chain of production, rewarding improvements at every stage can lead to increased productivity and, subsequently, offer an advantage when trading internationally, as indicated by the information provided. This reward system also motivates suppliers to partake in research and development, which benefits many through the creation of better or less expensive products.