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,banks,airlines,customers' offices,and courier services that make sure the diamonds are safely delivered.According to Michael Porter's theory about national competitive advantage,India's success in the diamond industry is due in part to its
A) company strategy, structure, and rivalry.
B) absence of competition.
C) related and supporting industries.
D) factor conditions.
E) demand conditions.

Question

Quizplus · Accepted Answer

Michael Porter's theory of national competitive advantage identifies four key factors: factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry. Among these factors, India's success in the diamond industry can be attributed to its related and supporting industries, which include trading firms, banks, airlines, customers' offices, and courier services that ensure the safe delivery of diamonds. These related and supporting industries create economies of scale and scope, reduce transaction costs, and increase productivity and efficiency, thereby providing a competitive advantage to the diamond industry in India.

Out of Every 10 Diamonds Sold in the World Pass