What does global coordination of major business functions primarily permit?

The correct answer is comparative advantage. Global coordination of major business functions allows organizations to optimize their operations by leveraging the unique strengths and capabilities of different geographic regions. For example, a company can source raw materials from countries where they are abundant and inexpensive, while also utilizing skilled labor from regions that have a high level of expertise in certain manufacturing processes. This optimization leads to lower costs and enhanced efficiency, giving the company a competitive edge in the global market.

By strategically coordinating functions such as production, marketing, and logistics across borders, businesses are able to minimize expenses and maximize their outcomes. This creates a situation where companies gain a comparative advantage over their competitors, enabling them to offer products and services at more favorable prices or with superior quality.

Other concepts like social norms and values, competitive threat, and knowledge base, while relevant to global business, do not directly pertain to the advantages gained through the coordinated efforts of business functions on a global scale. Thus, the focus on comparative advantage highlights the strategic benefits of such coordination in a globalized economy.