Answer: cost advantage Â
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Explanation: In simple words, cost advantage refers to the advantage earned by the company due to their ability to produce a product at lower cost than others.
In the given case, Carpo inc,. is also the owner of steel and leather companies thus they can make watches at a lower cost as they do not have to bear to profit margin that the external supplier will be getting from them. Â Â
Hence from the above we can conclude that the correct option is D.
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