Nine 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 about national competitive advantage identifies four main factors that drive a country's success in a particular industry: factor conditions, related and supporting industries, company strategy, structure, and rivalry, and demand conditions. In the case of India's diamond industry, the country's success can be attributed to its related and supporting industries, such as trading firms, banks, airlines, customer offices, and courier services that ensure the safe delivery of diamonds. These industries create a strong ecosystem that supports and enhances the diamond industry's competitiveness. Therefore, option C, related and supporting industries, is the best choice.

Nine Out of Every 10 Diamonds Sold in the World