Which of the following is true of factor endowments according to Porter?

Question

Quizplus · Accepted Answer

According to Porter, disadvantage in basic factors like low-skilled labor or undependable infrastructure can create pressures for firms to invest in advanced factors like technology and specialized knowledge. Therefore, D is the correct option. Option A is incorrect as advanced factors like technology and innovation are considered more significant for competitive advantage in Porter's theory. Option B is incorrect as basic factors like education and infrastructure can also be endowed by nature. Option C is incorrect as investment in basic factors like infrastructure and education can extend the initial advantage provided by basic factors. Option E is incorrect as advanced factors in Porter's theory include factors like research and development, technology, and skilled labor, but not climate, location, or demographics.

Which of the Following Is True of Factor Endowments According