Final answer:
False. Firms usually internalize those value-chain activities they consider part of their core competencies.
Step-by-step explanation:
False. Firms usually internalize those value-chain activities they consider part of their core competencies. This means that they focus on activities that they excel at and that provide them with a competitive advantage in the market. By internalizing these activities, firms can maintain control and ensure the quality and efficiency of their processes.
For example, a company that specializes in technology development may choose to internalize research and development, while outsourcing activities like manufacturing or marketing.
By focusing on their core competencies, firms can better allocate resources and improve their overall performance.