Which of the following statements is true in the context of attributes of national competitive advantage?
A)Factor endowments do not encompass aspects such as managerial sophistication.
B)Companies are typically least sensitive to the needs of their closest customers.
C)The benefits of investments in advanced factors of production by related and supporting industries are confined to those industries.
D)Domestic rivalry creates pressures to increase costs and avoid investing in upgrading advanced factors.
E)The nature of home demand shapes the attributes of domestically made products .

Question

Which of the following statements is true in the context of attributes of national competitive advantage?
A)Factor endowments do not encompass aspects such as managerial sophistication.
B)Companies are typically least sensitive to the needs of their closest customers.
C)The benefits of investments in advanced factors of production by related and supporting industries are confined to those industries.
D)Domestic rivalry creates pressures to increase costs and avoid investing in upgrading advanced factors. 
E)The nature of home demand shapes the attributes of domestically made products .

Quizplus · Accepted Answer

The statement "The nature of home demand shapes the attributes of domestically made products" is true. This is because companies tend to be more sensitive to the needs and tastes of their home market, which can lead to the development of unique product attributes that are difficult for foreign competitors to replicate. Factors endowments can encompass managerial sophistication, domestic rivalry can create pressures for firms to innovate and reduce costs, and investments in advanced factors of production by related and supporting industries can benefit the entire industry ecosystem.

Which of the Following Statements Is True in the Context