Final answer:
Yes, automation can help businesses increase or transform capabilities and manage resources more effectively. Businesses can gain productivity and competitive advantages through automation and reinvestment, while managing comparative advantage in the global market.
Step-by-step explanation:
A business can indeed use automation to learn new ways to increase or transform its capabilities and to find better ways of managing its resources. By investing in technologies that automate processes, businesses can potentially achieve increased productivity and efficiency, as outlined in the benefits of bureaucracies. Moreover, developing new technologies can give a business a competitive advantage, especially if such technologies can be reused in multiple products over time as indicated in Chapter 20. Furthermore, business growth can be encouraged by reinvesting profits into new plants and equipment, and business mergers can introduce both challenges and opportunities, as mentioned in Universal Generalizations. In addition, multinationals may leverage automation to introduce opportunities in foreign nations.
Considering comparative advantage, as outlined in Chapter 19 and Chapter 33, businesses can automate processes in parts of their value chain where they have specialized knowledge, leveraging the education of their workers and the economies of scale to gain a competitive edge in the global market.
Answer: True