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All business activities and processes lend themselves to global sourcing."

a) True
b) False

User Paredes
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1 Answer

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Final answer:

The statement is false because not all business activities are suitable for global sourcing due to factors that provide a comparative advantage, such as education, specialized knowledge, and economies of scale.

Step-by-step explanation:

The statement "All business activities and processes lend themselves to global sourcing." is false. Not all business activities and processes are suitable for global sourcing due to various reasons, including differences in productivity levels between economies that provide a comparative advantage, specialized knowledge in certain value chain segments, or economies of scale.

When considering comparative advantages, factors such as the education of workers, the knowledge base of engineers and scientists, and specialized learning within a split-up value chain are crucial. These factors determine where a business can most effectively perform certain activities. Global sourcing is not a one-size-fits-all solution and must be evaluated based on the specific circumstances and strategic goals of each business operation.

User Lucas T
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