Government support of domestic businesses is the most important factor in generating national competitive advantage.

Question

Quizplus · Accepted Answer

While government support can play a significant role in enhancing a nation's competitive advantage by providing infrastructure, education, and regulatory frameworks, it is not the sole or most important factor. Other critical factors include the condition of factor endowments, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry, as outlined in Porter's Diamond model. Innovation, technological advancement, and the skills of the workforce also significantly contribute to generating a national competitive advantage.

Government Support of Domestic Businesses Is the Most Important Factor