232k views
5 votes
T/F: ERP provide a competitive advantage only.

User Conrad C
by
8.4k points

1 Answer

3 votes

Final answer:

False, ERP systems contribute to competitive advantage but are not the sole determinant. Comparative advantage can also stem from workforce education, technological expertise, specialized activities in value chains, and economies of scale.

Step-by-step explanation:

The statement that ERP (Enterprise Resource Planning) systems provide a competitive advantage only is false. While ERP systems are indeed a crucial factor in achieving a competitive advantage, they are not the sole determinant. Comparative advantage between two economies can arise from a variety of other sources as well. For instance, differences in productivity can be attributed to elements such as the level of education among the workforce, the knowledge base of engineers and scientists, the location of certain activities within a value chain, and the benefits of economies of scale.

Comparative advantage enables economies to benefit from trade by specializing in the production of goods and services where they have a lower opportunity cost. An ERP system can certainly enhance a company's efficiency and contribute to this advantage by integrating various business processes, but it's important to recognize the role of other factors that influence productivity.

User Shoaib Ijaz
by
7.5k points