The existence of the four favorable conditions of the diamond of national advantage does not guarantee that an industry will develop in a given locale.

Question

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The existence of the four favorable conditions (factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry) creates an environment that is conducive to the development of an industry. However, other factors such as government policies, infrastructure, and the availability of resources can also affect whether an industry will develop in a particular location. Therefore, the existence of the four favorable conditions does not guarantee the development of an industry.

The Existence of the Four Favorable Conditions of the Diamond