Which of the following observations is consistent with Michael Porter’s theory of national competitive advantage?

Which of the following observations is consistent with Michael Porter’s theory of national competitive advantage?

A. Factors such as domestic demand and domestic rivalry determine nations’ dominance on production.

B. Countries should produce only those goods for which they have a comparative advantage.

C. Interplay between the factors of production cause international marketing decisions.

D. International differences in labor productivity determine nations’ supremacy in production.

ANSWER:

A. Factors such as domestic demand and domestic rivalry determine nations’ dominance on production.