Each 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)socio-cultural conditions.

Question

Quizplus · Accepted Answer

Michael Porter's theory of competitive advantage suggests that a country's factor conditions, such as skilled labor and infrastructure, can contribute to its ability to compete and succeed in a particular industry. In this case, India's skilled, low-cost labor has been a crucial factor in making it the world's premier center for diamond cutting and polishing, allowing it to dominate the global diamond trade. Therefore, the best choice is C) factor conditions.

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