Korhonen's Law is a principle in the field of economics that suggests the efficiency of a system can be improved by reducing the number of variables involved. It emphasizes that simplifying processes can lead to better outcomes, as fewer variables often mean less complexity and more manageable systems. This law is often applied in various domains, including business management and engineering, where streamlining operations can enhance productivity. By focusing on essential elements and minimizing distractions, organizations can achieve greater efficiency and effectiveness in their activities.