Which of the following statements is true in the context of attributes of national competitive advantage?
A) Factor endowments do not encompass aspects such as managerial sophistication.
B) Companies are typically least sensitive to the needs of their closest customers.
C) The benefits of investments in advanced factors of production by related and supporting industries are confined to those industries.
D) Domestic rivalry creates pressures to increase costs and avoid investing in upgrading advanced factors.
E) The nature of home demand shapes the attributes of domestically made products.

Question

Quizplus · Accepted Answer

The statement "The nature of home demand shapes the attributes of domestically made products" is true according to the theory of national competitive advantage put forth by Michael Porter. This theory suggests that a country's competitive advantage can be explained by the presence of certain factors, including factor endowments, related and supporting industries, domestic rivalry, and the nature of home demand. The attributes of domestically made products are shaped by the needs and preferences of the domestic market, which creates conditions for firms to innovate and improve their products.

Which of the Following Statements Is True in the Context