Question

A value chain is best defined as __________.

a. the series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products
b. a partnership made up of the company, its suppliers, its distributors, and, ultimately, its customers to improve the performance of the entire system
c. company growth that is achieved by starting up or acquiring businesses outside the company's current products and markets
d. company growth that is achieved by increasing sales of current products to current market segments without changing the product

Answer 1

A value chain refers to the sequence of activities performed by a firm's internal departments to create value in producing and supporting products, where each stage can be located in different parts of the world, leading to economic benefits from specialized intra-industry trade.

Step-by-step explanation:

A value chain is best defined as the series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products. This concept highlights the fact that the production of a good, like an iPhone, involves multiple stages including designing, engineering, supplying parts, assembly, and marketing, which can be spread across different locations worldwide due to advancements in communication technology, information sharing, and transportation. The breakdown of these processes essentially splits up the value chain, where international trade typically involves the transfer of specialized components rather than finished products, fostering intra-industry trade and economic gains through specialization and innovation on particular parts of the value chain.