Which theory is based on the notion that competitive advantage is dependent on the four interacting aspects of factor endowments,domestic demand,firm strategy,and related and supporting industries?
A) Strategic trade theory
B) Product life cycle theory
C) Comparative advantage theory
D) National competitive advantage of industries theory

Question

Which theory is based on the notion that competitive advantage is dependent on the four interacting aspects of factor endowments,domestic demand,firm strategy,and related and supporting industries? 
A) Strategic trade theory 
B) Product life cycle theory 
C) Comparative advantage theory 
D) National competitive advantage of industries theory

Quizplus · Accepted Answer

The theory that is based on the notion that competitive advantage is dependent on the four interacting aspects of factor endowments, domestic demand, firm strategy, and related and supporting industries is the National Competitive Advantage of Industries theory. This theory was introduced by Michael Porter in his book "The Competitive Advantage of Nations."

Which Theory Is Based on the Notion That Competitive Advantage