day,in a third-class carriage of the express train that runs between Bombay and Ahmadabad,plainly dressed couriers carry precious cargo: diamonds.Rough gems are imported to Bombay from dealers in London,Antwerp,Tel Aviv,and New York.Couriers then take these gems to cutting and polishing centers in Gujarat state and then carry them back to Bombay to be reexported to the world.This system,based on trust,secrecy,and skilled low-cost labor,has worked 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.India's ability to use its skilled labor as a resource is an example of what Michael Porter would term
A) structural conditions.
B) demand conditions.
C) factor conditions.
D) competitive conditions.
E) sociocultural conditions.

Question

Quizplus · Accepted Answer

Michael Porter's theory of the Diamond Model focuses on four key factors that impact a country's competitiveness in a particular industry - factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry. In this scenario, India's competitive advantage in the diamond industry is primarily due to its factor conditions, specifically its skilled and low-cost labor. The trust and secrecy mentioned in the passage also point towards the importance of institutional and regulatory conditions, which are a subset of factor conditions in Porter's model.

Day,in a Third-Class Carriage of the Express Train That Runs