Final answer:
The correct answer is (c) value delivery network, describing the collaboration between a company, its suppliers, distributors, and customers to enhance the overall system's performance.
This concept ties into the modern trend of splitting up the value chain, allowing specialization and intra-industry trade, which results in economic gains.
Step-by-step explanation:
A value delivery network consists of the company, its suppliers, its distributors, and, ultimately, its customers who partner with each other to improve the performance of the entire system.
Therefore, the correct answer to the student's question is option (c) value delivery network.
Splitting up the value chain has become a common trend in international trade, where production is carried out in stages across different firms and countries.
For instance, designing and engineering might take place in one country while parts are supplied from another, assembly occurs in another, and advertising and marketing are conducted in yet another
This allows firms to focus on what they do best, leading to gains from intra-industry trade, specialization, and economies of scale, all of which are in line with the theory of comparative advantage.