Which of the following observations is consistent with Michael Porter's theory of national competitive advantage?
A) Factors such as domestic demand and domestic rivalry explain nations' dominance in production.
B) Countries should produce only those goods for which they have a comparative advantage.
C) Interplay between the factors of production cause international marketing decisions.
D) International differences in labor productivity determine nations' supremacy in production.

Question

Quizplus · Accepted Answer

Michael Porter's theory of national competitive advantage attempts to explain why particular nations achieve international success in particular industries. In addition to factor endowments, Porter points out the importance of country factors such as domestic demand and domestic rivalry in explaining a nation's dominance in the production and export of particular products.

Which of the Following Observations Is Consistent with Michael Porter's