One Method of Facilitating the Transfer of Competencies Between Firms

question 31

Multiple Choice

One method of facilitating the transfer of competencies between firms is to:

• A) virtually integrate the two firms.
• B) transfer key people into new management positions.
• C) share support activities, such as purchasing practices.
• D) restructure the weaker firm to mirror the structure of the more successful firm.

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Definitions:

Producing Wool

The process of growing, harvesting, and processing wool fibers from sheep or other animals for use in textile production.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Comparative Advantage

The ability of an entity to produce goods or services at a lower opportunity cost than others, leading to more efficient trade.

Absolute Advantage

The ability of a party, company, or country to produce a good or service more efficiently than its competitors using the same amount of resources.