According to Porter,the nature of the interaction between potential industry entrants,buyers,substitute products,suppliers,and rival firms determines:
A)whether or not the government will launch an antitrust investigation.
B)the industry's profit potential in terms of long-run return on invested capital.
C)whether a country can generate a balance of payments surplus.
D)whether a country can create a comparative advantage in the production of differentiated products.
E)whether a country can generate income by innovation.

Question

Quizplus · Accepted Answer

Porter's Five Forces framework posits that the nature of the interaction between potential industry entrants, buyers, substitute products, suppliers, and rival firms influences the competitive environment of an industry, which in turn determines the industry's profit potential in terms of long-run return on invested capital.

According to Porter,the Nature of the Interaction Between Potential Industry