📚 Learning Guide
Production Advantage
hard

How does the integration of innovative technology within a supply chain impact a company's comparative advantage in a global market?

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Choose the Best Answer

A

It enhances efficiency and reduces production costs, allowing the company to offer lower prices.

B

It solely increases the product variety without affecting costs.

C

It only improves customer service without impacting production.

D

It complicates the supply chain, leading to increased operational costs.

Understanding the Answer

Let's break down why this is correct

Answer

Integrating innovative technology—such as AI‑driven demand forecasting, blockchain for traceability, and automated warehousing—lets a company reduce costs, speed up deliveries, and improve product quality, which strengthens its competitive edge worldwide. By cutting lead times and lowering inventory levels, the firm can respond faster to market changes, keeping prices attractive while maintaining higher standards than rivals. The technology also creates transparency that builds trust with customers and partners, making the company a preferred supplier in global trade. For example, a manufacturer that uses real‑time sensor data to predict machine failures can avoid costly downtime, keeping its products in the market longer than competitors who rely on manual checks. Thus, tech integration turns logistical efficiency into a lasting comparative advantage.

Detailed Explanation

New tech speeds up tasks, cuts waste, and saves money. Other options are incorrect because People think technology only adds new product types; The idea that technology only helps customers ignores that faster manufacturing reduces time and money spent on goods, which boosts competitiveness.

Key Concepts

Supply Chain Optimization
Comparative Advantage
Technological Innovation
Topic

Production Advantage

Difficulty

hard level question

Cognitive Level

understand

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