Identify the theory that suggests that it is in the best interest of business for a firm to invest in upgrading advanced factors of production.

Question

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The theory that suggests it is in the best interest of business for a firm to invest in upgrading advanced factors of production is the National competitive advantage theory, also known as Porter's Diamond theory. This theory proposes that a nation's competitiveness in a certain industry relies on four interconnected factors, including advanced factors of production, such as technology, skilled labor, and infrastructure. By investing in these advanced factors, firms can enhance their productivity and competitiveness in the global market.

Identify the Theory That Suggests That It Is in the Best