Which of the following statements is true in the context of local demand conditions?
A) Companies are typically least sensitive to the needs of their closest customers.
B) Home demand plays little role in helping companies upgrade their national competitive advantage.
C) A nation's companies gain competitive advantage if their domestic customers are sophisticated and demanding.
D) The characteristics of international demand alone shape the attributes of a company's products; not local demand.
E) Local demand characteristics have little role to play in creating pressure for innovation and quality.

Question

Quizplus · Accepted Answer

The statement "A nation's companies gain competitive advantage if their domestic customers are sophisticated and demanding" is true in the context of local demand conditions. This is because when a company's domestic customers are demanding, it creates pressure on the company to innovate and produce high-quality products to meet those demands. This, in turn, can lead to a competitive advantage for the company within its national market, and potentially even internationally.

Which of the Following Statements Is True in the Context