Question 1

To become leaders in the world market,countries need related and supporting industries because

Accepted Answer

Clusters of strong suppliers can accelerate innovation by sharing knowledge, expertise, and resources. This creates a competitive advantage for the country and helps it become a leader in the world market. Collaborative suppliers can also generate revenue for further investment, but this is not the only reason why related and supporting industries are important. Eliminating the need to import materials from other countries and lessening financial vulnerability and increasing buying power can be advantages, but they are not specific to the development of related and supporting industries. Most countries do not believe strongly in protectionism anymore, as globalization and free trade have become more prevalent.

Question 2

The Italian shoe industry has become a world leader because of intense domestic competition among firms such as Bruno Magli and Rossimoda.According to Michael Porter's theory about national competitive advantage,Italy's success in the shoe industry is due in part to its

Accepted Answer

Michael Porter's theory of national competitive advantage suggests that a country's success in certain industries is due to various factors, including company strategy and structure, the intensity of domestic competition, related and supporting industries, factor conditions (such as access to skilled labor and infrastructure), and demand conditions. In the case of Italy's shoe industry, intense domestic competition among firms like Bruno Magli and Rossimoda has played a significant role in driving innovation and improving the quality of the country's shoe products, thus leading to a competitive advantage in the global marketplace. Therefore, the best choice is A, as it directly addresses the importance of company strategy, structure, and rivalry in Italy's success in the shoe industry.

Question 3

Which of the following is an example of a demand condition?

Accepted Answer

The sophistication of consumers is an example of a demand condition as it refers to the consumers' preferences and demand for innovative products or services. This can affect the competitiveness of businesses operating in the market. The other options (A, B, D, E) are examples of factors related to the supply side of the market.

Question 4

Which of the following is an element of company strategy,structure,and rivalry?

Accepted Answer

The intensity of competition is a key aspect of company strategy, structure, and rivalry as it determines how fiercely companies within an industry compete against each other. This can impact pricing, marketing, and innovation strategies. Factors such as the number of suppliers, market size, and sophistication of consumers can also influence competition but are not considered direct elements of company strategy, structure, and rivalry. Sales of companies in an industry are a result of competition, but do not determine the competitive environment itself.

Question 5

Which of the following is an element of related and supporting industries?

Accepted Answer

The existence of supplier clusters is an element of related and supporting industries as it refers to the presence of companies that support the main industry with necessary inputs and services.

Question 6

Nine out of every 10 diamonds sold in the world pass through India,making diamonds that country's largest export at $6.6 billion a year.One of the reasons for its success is the nation's 2,500 trading firms,banks,airlines,customers' offices,and courier services that make sure the diamonds are safely delivered.According to Michael Porter's theory about national competitive advantage,India's success in the diamond industry is due in part to its

Accepted Answer

Michael Porter's theory about national competitive advantage identifies four main factors that drive a country's success in a particular industry: factor conditions, related and supporting industries, company strategy, structure, and rivalry, and demand conditions. In the case of India's diamond industry, the country's success can be attributed to its related and supporting industries, such as trading firms, banks, airlines, customer offices, and courier services that ensure the safe delivery of diamonds. These industries create a strong ecosystem that supports and enhances the diamond industry's competitiveness. Therefore, option C, related and supporting industries, is the best choice.

Question 7

Austria has been described as "the very heartland of European coffee culture." These "coffee-knowledgeable" Austrians drink 21.5 liters of coffee per person annually.Starbucks wanted to open coffee houses in Austria and sell Starbucks coffee there.For Starbucks,the Austrian level of coffee-drinking sophistication would be an example of

Accepted Answer

Demand conditions refer to the nature and level of demand for a product or service in a particular market. The high level of coffee consumption in Austria indicates strong demand conditions for Starbucks.

Question 8

Each day,in a third-class carriage of the express train that runs between Bombay and Ahmadabad,plainly dressed couriers carry precious cargo: diamonds.Rough gems are imported to Bombay from dealers in London,Antwerp,Tel Aviv,and New York.Couriers then take these gems to cutting and polishing centers in Gujarat state and then carry them back to Bombay to be reexported to the world.This system,based on trust,secrecy,and skilled low-cost labor,has worked for half a century.It has helped make India the world's premier center for diamond cutting and polishing.Nine out of every 10 stones sold in the world pass through India,making diamonds that country's largest export.India's ability to use its skilled labor as a resource is an example of what Michael Porter would term

Accepted Answer

Michael Porter's theory of competitive advantage suggests that a country's factor conditions, such as skilled labor and infrastructure, can contribute to its ability to compete and succeed in a particular industry. In this case, India's skilled, low-cost labor has been a crucial factor in making it the world's premier center for diamond cutting and polishing, allowing it to dominate the global diamond trade. Therefore, the best choice is C) factor conditions.

Question 9

The Dutch lead the world in the cut-flower industry because of their research in flower cultivation,packaging,and shipping.Using this knowledge as a resource is an example of what Michael Porter would term

Accepted Answer

Michael Porter's Diamond Model identifies factor conditions as one of the four key determinants of national competitive advantage. Factor conditions refer to a country's endowment of resources necessary for a particular industry, such as skilled labor and infrastructure. In this case, the Netherlands' expertise in flower cultivation, packaging, and shipping can be considered a factor condition that has contributed to their leadership in the cut-flower industry.

Question 10

According to Michael Porter's diamond in Figure 7-2 above,quadrant "B" represents

Accepted Answer

The answer of According to Michael Porter's diamond in Figure...

Question 11

According to Michael Porter's diamond in Figure 7-2 above,quadrant "D" represents

Accepted Answer

The answer of According to Michael Porter's diamond in Figure...

Question 12

According to Michael Porter's diamond in Figure 7-2 above,quadrant "A" represents

Accepted Answer

Quadrant "A" represents factor conditions, which refers to the resources and capabilities that are available within a country, such as infrastructure, education level of the workforce, and technological advancements.

Question 13

Which of the following statements reflects Michael Porter's theory regarding national competitive advantage?

Accepted Answer

Michael Porter's theory of competitive advantage suggests that a company that succeeds in its domestic market is likely to succeed in global markets. This is because the company has already developed competitive advantages such as brand recognition, distribution channels, and product differentiation in its domestic market.

Question 14

According to Michael Porter's diamond in Figure 7-2 above,quadrant "C" represents

Accepted Answer

Quadrant "C" represents demand conditions, which include the nature and size of domestic and international markets for a particular industry's products or services. These demand conditions highly influence a company's strategy and competitiveness.

Question 15

Michael Porter has identified four key elements in a nation's competitive advantage: factor conditions;demand conditions;related and supporting industries;and __________.

Accepted Answer

The four key elements identified by Michael Porter in a nation's competitive advantage are factor conditions, demand conditions, related and supporting industries, and company strategy, structure and rivalry. Option D correctly identifies the last element. Option A (consumer behavior) and Option E (suppliers) fall under the category of related and supporting industries, while Option B (workforce education and skill levels) is an important factor condition. Option C (governmental regulation) may also be a factor condition but is not one of the four key elements identified by Porter.

Question 16

Michael Porter has identified four key elements in a nation's competitive advantage: factor conditions;demand conditions;__________;and company strategy,structure and rivalry.

Accepted Answer

Related and supporting industries are one of the four key elements in Michael Porter's Diamond Model of national competitive advantage, alongside factor conditions, demand conditions, and company strategy, structure, and rivalry.

Question 17

Michael Porter has identified four key elements in a nation's competitive advantage: factor conditions;__________;related and supporting industries;and company strategy,structure and rivalry.

Accepted Answer

The four key elements in a nation's competitive advantage identified by Michael Porter are factor conditions, demand conditions, related and supporting industries, and company strategy, structure, and rivalry. Out of the given options, only demand conditions are missing from the list, and hence A is the correct answer.

Question 18

Michael Porter has identified four key elements in a nation's competitive advantage: __________;demand conditions;related and supporting industries;and company strategy,structure and rivalry.

Accepted Answer

Michael Porter identified factor conditions, which refer to a nation's unique endowments such as natural resources, skilled labor and infrastructure, as a key element in a nation's competitive advantage. The other options listed are not identified as key elements by Porter.

Question 19

Which of the following statements reflects Michael Porter's theory regarding national competitive advantage?

Accepted Answer

Michael Porter's theory of national competitive advantage emphasizes the importance of a country's natural resources, education, and infrastructure in building and sustaining a competitive advantage. He also stresses the importance of government policies in supporting economic development and encouraging innovation. Choice A is not directly related to Porter's theory, while choices B, D, and E do not accurately reflect his ideas.

Question 20

According to Michael Porter's diamond of national competitive advantage,both the number and sophistication of domestic customers for an industry's product are examples of

Accepted Answer

Demand conditions refer to the characteristics of domestic customers and the intensity and sophistication of their needs and wants. This includes the number and quality of domestic customers for an industry's product.

Quiz 7: Understanding and Reaching Global Consumers and Markets

To become leaders in the world market,countries need related and supporting industries because

The Italian shoe industry has become a world leader because of intense domestic competition among firms such as Bruno Magli and Rossimoda.According to Michael Porter's theory about national competitive advantage,Italy's success in the shoe industry is due in part to its

Which of the following is an example of a demand condition?

Which of the following is an element of company strategy,structure,and rivalry?

Which of the following is an element of related and supporting industries?

The Dutch lead the world in the cut-flower industry because of their research in flower cultivation,packaging,and shipping.Using this knowledge as a resource is an example of what Michael Porter would term

According to Michael Porter's diamond in Figure 7-2 above,quadrant "B" represents

According to Michael Porter's diamond in Figure 7-2 above,quadrant "D" represents

According to Michael Porter's diamond in Figure 7-2 above,quadrant "A" represents

Which of the following statements reflects Michael Porter's theory regarding national competitive advantage?

According to Michael Porter's diamond in Figure 7-2 above,quadrant "C" represents

Michael Porter has identified four key elements in a nation's competitive advantage: factor conditions;demand conditions;related and supporting industries;and __________.

Michael Porter has identified four key elements in a nation's competitive advantage: factor conditions;demand conditions;__________;and company strategy,structure and rivalry.

Michael Porter has identified four key elements in a nation's competitive advantage: factor conditions;__________;related and supporting industries;and company strategy,structure and rivalry.

Michael Porter has identified four key elements in a nation's competitive advantage: __________;demand conditions;related and supporting industries;and company strategy,structure and rivalry.

Which of the following statements reflects Michael Porter's theory regarding national competitive advantage?

According to Michael Porter's diamond of national competitive advantage,both the number and sophistication of domestic customers for an industry's product are examples of