Question

What theory implies that you should allow another firm to perform work activities for your company if that company can do it more productively than you can? theory of core competencies theory of outsourcing theory of competitive advantage theory of offshoring theory of comparative advantage?

Answer 1

The theory of comparative advantage implies that you should allow another firm to perform work activities for your company if that company can do it more productively than you can.
Comparative advantage is term used in economics to denote the ability to produce goods and services at a lower opportunity cost than competitors or trade partners. This theiry is the foundational principle in the theory of international trade.