Perceived national challenges, along with a cluster of domestic rivals, will stimulate factor creation in Porter's model.

Question

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In Porter's model, the perceived national challenges and domestic rivals act as pressures that stimulate the creation of factors such as innovation, skilled labor, and infrastructure. This is because firms in a competitive environment are forced to improve their products and processes to gain a competitive advantage. Additionally, the perceived national challenges can create a sense of urgency among firms to address these challenges through innovation and efficient resource utilization. Therefore, the statement is true.

Perceived National Challenges, Along with a Cluster of Domestic Rivals