Which of the following statements is true in the context oflocal demand conditions?
A)Companies are typically least sensitive to the needs of their closest customers.
B)Home demand plays little role in helping companies upgrade their national competitive advantage.
C)A nation's companies gain competitive advantage if their domestic customers are sophisticated and demanding.
D)The characteristics of international demand alone shape the attributes of a company's products; not local demand.
E)Local demand characteristics have little role to play in creating pressure for innovation and quality.

Question

Which of the following statements is true in the context oflocal demand conditions?
A)Companies are typically least sensitive to the needs of their closest customers.
B)Home demand plays little role in helping companies upgrade their national competitive advantage.
C)A nation's companies gain competitive advantage if their domestic customers are sophisticated and demanding.
D)The characteristics of international demand alone shape the attributes of a company's products; not local demand. 
E)Local demand characteristics have little role to play in creating pressure for innovation and quality.

Quizplus · Accepted Answer

According to the concept of local demand conditions, a nation's companies can gain a competitive advantage if their domestic customers are sophisticated and demanding. This local demand creates pressure for companies to innovate and improve the quality of their products or services, which helps them upgrade their national competitive advantage. Option A, B, D, and E are not true in the context of local demand conditions.

Which of the Following Statements Is True in the Context