Porter's National diamond updates the theory of comparative advantage by integrating firms' development of resources and capabilities into a theory of factor and demand conditions, rather than relative (and fixed) factor endowments

Question

Quizplus · Accepted Answer

Porter's National Diamond model expands on the theory of comparative advantage by incorporating factors such as firm strategy, structure, and rivalry, as well as related and supporting industries, in addition to factor endowments and demand conditions. This broader approach allows for a more comprehensive analysis of a nation's competitiveness in a particular industry.

Porter's National Diamond Updates the Theory of Comparative Advantage by Integrating