In order to achieve a competitive advantage in certain countries and certain industries using factor endowments, a company needs to have which of the following?
A) Only basic factors of production such as land, labor, and capital
B) Only advanced factors of production such as technological know-how and managerial sophistication
C) A combination of basic and advanced factors of production
D) Demand for the industry's product or service
E) Factor endowments are not a prime determinant of the competitive advantage

Question

Quizplus · Accepted Answer

A combination of basic and advanced factors of production is necessary to achieve a competitive advantage in certain countries and industries using factor endowments. While basic factors such as land, labor, and capital are important, advanced factors such as technological know-how and managerial sophistication are also crucial. The right combination of these factors can help a company produce goods or services more efficiently and effectively, thus giving them a competitive advantage in the marketplace. Additionally, demand for the industry's product or service is also important, but it alone is not enough to achieve a sustainable competitive advantage.

In Order to Achieve a Competitive Advantage in Certain Countries