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, its banks, airlines, customers' offices, and courier services that make sure the diamonds are safely delivered. Most of these are members of the diamond trading bourse in Bombay. According to Michael Porter's theory about national competitive advantage, India's success in the diamond industry is due in part to its:
A)factor conditions.
B)absence of competition.
C)related and supporting industries.
D)company strategy, structure, and rivalry.

Question

Quizplus · Accepted Answer

India's success in the diamond industry is due to the presence of related and supporting industries, such as its trading firms, banks, airlines, customers' offices, and courier services, that make sure the diamonds are safely delivered. This is in line with Michael Porter's theory about the importance of a strong and interconnected set of related and supporting industries in creating national competitive advantage.

Nine Out of Every 10 Diamonds Sold in the World