121. Which of the following factor endowments would be classified as a basic factor by
Michael Porter?
122. Which of the following factor endowments would be classified as an advanced factor by
Michael Porter?
123. Porter argued that in terms of factor endowments, _____ factors are the most significant
for competitive advantage.
124. Which of the following is true of factor endowments according to Porter?
125. Which of the following components of Porter’s diamond is particularly important in
shaping the attributes of domestically made products and in creating pressures for innovation
and quality?
126. Porter argues that a nation’s firms gain competitive advantage if their domestic
consumers are:
127. _____ occur(s) when employees move between firms within a region and when national
industry associations bring employees from different companies together for regular conferences
or workshops.
128. Porter, in his diamond model, suggested that there is a strong association between _____
and the creation and persistence of competitive advantage in an industry.
129. Which of the following was a pervasive finding of Porter’s study?
130. Does Porter’s model of competitive advantage predict the pattern of international trade
that we observe in the real world?
131. If a company were to draw from the ideas proposed in the various theories of
international trade, from a profit perspective, how would it go about selecting locations for its
businesses?
132. Which of the following helps a firm to preempt available demand, gain cost advantages
related to volume, and build an enduring brand ahead of later competitors?
133. What is meant by the term free trade? Is free trade compatible with the concept of
mercantilism?