Which theory is based on the notion that competitive advantage is dependant 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

Quizplus · Accepted Answer

The theory that is based on the notion that competitive advantage is dependant 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, developed by Michael Porter. Option A refers to the theory that countries can gain a competitive advantage by implementing policies aimed at promoting exports and limiting imports. Option B refers to the theory that products go through four stages of life cycle: introduction, growth, maturity, and decline. Option C refers to the theory that countries should specialize in producing goods that they can produce more efficiently than other countries.

Which Theory Is Based on the Notion That Competitive Advantage