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A firm's strategic resources and capabilities are the unique assets and skills it possesses.

A) True
B) False

User Zbrox
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1 Answer

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Final answer:

The statement is False. The source of comparative advantage is not limited to natural elements like climate and mineral deposits; it can be based on various factors such as technological capabilities and skilled labor. Option B

Step-by-step explanation:

The statement is False. The source of comparative advantage does not need to be limited to natural elements like climate and mineral deposits. Comparative advantage refers to a country or firm's ability to produce a good or service at a lower opportunity cost compared to another country or firm.

It can be based on a variety of factors, such as technological capabilities, skilled labor, infrastructure, access to capital, and economies of scale. For example, a country with advanced technology and skilled labor may have a comparative advantage in producing high-tech products, even if it lacks natural resources.

Therefore, the source of comparative advantage is not solely dependent on natural elements and can be influenced by various factors. Option B

User Samuel Alpoim
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