Question 1

According to Michael Porter's diamond of national competitive advantage,both the number and sophistication of domestic customers for an industry's product are examples of:

Accepted Answer

According to Porter's diamond, demand conditions refer to the size and complexity of domestic customers and their needs. Therefore, both the number and sophistication of domestic customers for an industry's product are examples of demand conditions. Structural conditions refer to factors such as the presence of supporting industries and factors of production, while socio-cultural conditions refer to societal values and norms that may affect the industry. Competitive conditions refer to the level of competition within the industry itself.

Question 2

A nation's ability to turn its natural resources,education,and infrastructure into a competitive advantage is reflected in:

Accepted Answer

Factor conditions refer to a nation's ability to turn its factors of production, including natural resources and human capital (education), into a competitive advantage. Infrastructure is also a factor that falls under the category of factor conditions. Therefore, the ability to turn natural resources, education, and infrastructure into a competitive advantage is reflected in factor conditions. Structural conditions refer to the distribution of firms and industries in a nation, socio-cultural conditions refer to the values, beliefs, and norms of a society, and competitive conditions refer to the level of competition in a nation's industries.

Question 3

The German leadership in scientific and industrial instrumentation relates directly to the cluster of supporting German precision engineering suppliers.This is an example of ________ in their competitive advantage as a nation.

Accepted Answer

The statement specifically mentions the cluster of supporting precision engineering suppliers, which is an example of related and supporting industries that contribute to Germany's competitive advantage in scientific and industrial instrumentation. Option A refers to broader economic, political, and social factors that influence competitiveness, option B relates to the characteristics of the domestic market, and option D pertains to the intensity of rivalry among firms in the industry.

Question 4

Every day,in a third-class carriage of the express train that rolls between Bombay and Ahmedabad,plainly dressed couriers carry precious cargo: diamonds.Rough gems are imported to Bombay from dealers in London,Antwerp,Tel Aviv,and New York,taken by these couriers to cutting and polishing centers in Gujarat state,and then carried back to Bombay to be reexported to the world.This system,based on trust,secrecy,and skilled low-cost labour,has been working for half a century.It has helped make India the world's premier center for diamond cutting and polishing.Nine out of every 10 stones sold in the world pass through India,making diamonds that country's largest export at $6.6 billion a year.This ability to use its skilled labour as a resource is an example of what Michael Porter would term:

Accepted Answer

The ability of India to use its skilled labor as a resource is an example of factor conditions, which refers to the nation's stock of factors such as human resources, physical infrastructure, natural resources, capital resources, and technological resources, which can be developed and deployed to create competitive advantages in various industries.

Question 5

The Dutch lead the world in the cut-flower industry because of their research in flower cultivation,packaging,and shipping-not because of their weather.This is an example of ________ in their competitive advantage as a nation.

Accepted Answer

Factor conditions refer to a nation's endowment of resources, both human and natural, that contribute to competitive advantage. In this case, the Dutch lead the cut-flower industry because of their expertise in flower cultivation, packaging, and shipping, which are factor conditions that they have developed through research and innovation, rather than relying on their natural weather conditions.

Question 6

Michael Porter has identified four key elements in a nation's competitive advantage.They are factor conditions,related and supporting industries; and company strategy,structure,and rivalry; and:

Accepted Answer

The fourth key element in Michael Porter's model of competitive advantage is demand conditions. This refers to the nature and size of the domestic market, as well as the sophistication and diversity of demand for products and services. Factors such as consumer behavior, preferences, and tastes can also affect demand conditions.

Question 7

Michael Porter has identified four key elements in a nation's competitive advantage.They are demand conditions; related and supporting industries; and company strategy,structure,and rivalry; and:

Accepted Answer

The fourth key element in a nation's competitive advantage, according to Michael Porter, is factor conditions. This refers to the nation's existing resources, including natural resources, human resources, capital resources, and infrastructure. These factor conditions can influence a nation's competitiveness in certain industries, as they may provide advantages or disadvantages to companies operating within that nation.

Question 8

A graphical representation of Michael Porter's elements which create a nation's competitive advantage looks like a:

Accepted Answer

Michael Porter's elements which create a nation's competitive advantage are known as the diamond model. It is represented as a diamond-shaped framework consisting of four key elements - factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry. Therefore, option A is the correct choice as it represents the graphical representation of Porter's diamond model.

Question 9

Researchers concluded that all of the below are effective axioms to include social media in a global marketing strategy except

Accepted Answer

The other options (A, B, and C) all emphasize the importance of acknowledging local and cultural differences when utilizing social media in a global marketing strategy. Option D, on the other hand, suggests that a "one-size-fits-all" approach is most useful, which contradicts the idea of tailoring social media strategies to different cultural contexts.

Question 10

Why might an upstart firm developing a new type of landing gear want to locate in Quebec's advanced aerospace cluster,home to firms such as Boeing,Bombardier,Pratt & Whitney,and Rolls Royce?

Accepted Answer

Quebec's advanced aerospace cluster is home to many firms that are related and supporting industries to aerospace. These firms have already established a network and infrastructure to support the aerospace industry, which can benefit the upstart firm developing new landing gear. Being located in the same cluster can also help the upstart firm to access suppliers, customers, and partners more easily, which would not be possible if located in a different location. Therefore, related and supporting industries are the most relevant factor for an upstart firm developing a new type of landing gear to locate in Quebec's advanced aerospace cluster.

Question 11

Which of the following statements best describes the recent relationship between the imports into Canada and the exports from Canada?

Accepted Answer

Exports have exceeded imports, indicating a continuing trade surplus.

Question 12

Michael Porter has identified four key elements to explain why some companies and industries succeed globally while others fail.These four elements collectively are called:

Accepted Answer

Michael Porter's four key elements that explain why some companies and industries succeed globally while others fail are collectively called "the diamond" of national competitive advantage.

Question 13

Nine out of every 10 diamonds sold in the world pass through India,making diamonds that country's largest export at $6.6 billion a year.One of the reasons for its success is the nation's 2,500 trading firms,its banks,airlines,customers' offices,and courier services that make sure the diamonds are safely delivered.Most of these are members of the diamond trading bourse in Bombay.According to Michael Porter's theory about national competitive advantage,India's success in the diamond industry is due in part to its:

Accepted Answer

According to Michael Porter's theory, national competitive advantage is determined by four factors- factor conditions, related and supporting industries, company strategy, structure, and rivalry, and demand conditions. In the case of India's success in the diamond industry, the presence of related and supporting industries such as trading firms, banks, airlines, customers' offices, and courier services that ensure safe delivery of diamonds plays a vital role. Therefore, the best choice is C.

Question 14

Which of the following is an example of related and supporting industries?

Accepted Answer

The existence of supplier clusters is an example of related and supporting industries as it refers to the presence of complementary industries that provide inputs to the focal industry. These suppliers can provide specialized inputs that are crucial to the focal industry's success.

Question 15

Which of the following is an example of a demand condition?

Accepted Answer

Demand conditions refer to the nature and size of the customer base for a product or service. The sophistication of consumers directly affects the demand for a product or service. Therefore, sophistication of consumers is an example of a demand condition. Natural resources, existence of supplier clusters, and intensity of competition are not demand conditions but rather factors that affect the supply side of the market.

Question 16

To become leaders in the world market,countries need related and supporting industries because:

Accepted Answer

Clusters of strong suppliers can accelerate innovation by sharing knowledge and expertise, leading to the development of new technologies and products. This can create a competitive advantage for countries in the global market. While A and B may be true, they do not necessarily contribute to a country becoming a leader in the world market. Option D is not a reason for countries needing related and supporting industries.

Question 17

Coca-Cola has adopted a short-message communication tool,similar to Twitter that is more prominent in South East Asia,to disseminate and market their soft-drink products.All of the following are likely reasons that Coca-Cola is using this local communication tool,except

Accepted Answer

Coca-Cola would not choose a communication tool with a small following for marketing purposes, as they aim to reach a larger audience.

Question 18

The Italian shoe industry has become a world leader because of intense domestic competition among such firms as MAB,Bruno Magli,and Rossimoda,which has made shoes for Christian Dior and Anne Klein Couture.This is an example of ________ in their competitive advantage as a nation.

Accepted Answer

The intense domestic competition among Italian shoe firms such as MAB, Bruno Magli, and Rossimoda suggests that company strategy, structure, and rivalry is the key factor in Italy's competitive advantage as a nation in the shoe industry.

Question 19

Austria has been described as "the very heartland of European coffee culture." Austrians drink 21.5 litres of coffee per person annually.Starbucks wanted to open coffeehouses in Austria and sell Starbucks coffee there.For Starbucks,the Austrian level of coffee sophistication would be an example of:

Accepted Answer

The Austrian level of coffee sophistication reflects the demand conditions, as it indicates the preferences and consumption habits of the local market.

Question 20

Japan's sophisticated consumers expect quality in their TVs and radios,thereby making Japan's producers,such as Sony,Sanyo,Matsushita,and Hitachi,some of the world leaders in the electronics industry.This is an example of ________ in their competitive advantage as a nation.

Accepted Answer

The sophisticated demands of Japanese consumers for quality in their electronics products create demand conditions that drive the success of Japan's electronics industry. This is a key factor in Japan's competitive advantage in this industry.

Quiz 7: Reaching Global Markets