A nation's competitiveness depends on the capacity of its industries to ____ and thereby maintain its competitive advantage.
A) diversify internationally
B) have access to critical resources
C) protect its proprietary capabilities
D) innovate

Question

Quizplus · Accepted Answer

Innovation is key to maintaining a competitive advantage in the global marketplace. By innovating, industries can develop new and improved products, processes, or business models that provide better value to customers and differentiate themselves from competitors. This allows them to stay ahead in the market and maintain or increase their market share, which is crucial to a nation's overall competitiveness. While the other choices could also contribute to a nation's competitiveness, they are not as fundamental as innovation. For example, access to critical resources or diversification can help industries improve their efficiency or expand their markets, but these factors alone may not be enough to sustain long-term competitiveness. Proprietary capabilities are also important, but without ongoing innovation, they can become obsolete over time.

A Nation's Competitiveness Depends on the Capacity of Its Industries