Question : 121.Which of the following factor endowments would be classified as : 1299295

121.Which of the following factor endowments would be classified as a basic factor by Michael Porter?  

A. Communication infrastructure

B. Research facilities

C. Natural resources

D. Skilled labor

E. Technological know-how

122.Which of the following factor endowments would be classified as an advanced factor by Michael Porter?  

A. Demographics

B. Climate

C. Natural resources

D. Skilled labor

E. Location

123.Porter argued that in terms of factor endowments, _____ factors are the most significant for competitive advantage.  

A. constant

B. basic

C. advanced

D. complementary

E. comparative

124.Which of the following is true of factor endowments according to Porter? 

A. Basic factors, unlike advanced factors, are the most significant for competitive advantage.

B. Basic factors can be upgraded by nations, while advanced factors are endowed by nature.

C. The initial advantage provided by advanced factors is extended by investment in basic factors.

D. Disadvantage in basic factors can create pressures to invest in advanced factors.

E. Advanced factors include climate, location, and demographics.

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? 

A. Basic factor endowments

B. Advanced factor endowments

C. Firm strategy

D. Demand conditions

E. Supporting industries

126.Porter argues that a nation’s firms gain competitive advantage if their domestic consumers are: 

A. sophisticated and demanding.

B. price insensitive and trusting.

C. accommodating and flexible.

D. nationalistic and protective of their domestic industries.

E. biased towards foreign products.

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. 

A. Domestic rivalry

B. Organizational restructuring

C. Management friction

D. Knowledge flows

E. Competitive advantage

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. 

A. trade barriers

B. vigorous domestic rivalry

C. purchasing power parity

D. the availability of a captive market

E. first-mover advantages

129.Which of the following was a pervasive finding of Porter’s study? 

A. Successful industries within a country tend to be grouped into clusters of related industries.

B. Trade increases the specialization of production within an industry.

C. The pattern of trade we observe in the world economy may be the result of first-mover advantages.

D. Purchasing power parity of a country determines its demand conditions.

E. Differences in technology may lead to differences in productivity, which in turn, drives international trade patterns.

130.Does Porter’s model of competitive advantage predict the pattern of international trade that we observe in the real world? 

A. Yes. Porter’s model has been supported by detailed empirical testing.

B. No. Porter’s model has not been subjected to detailed empirical testing.

C. No. Porter’s model is outdated and cannot be used to predict modern trade patterns.

D. Yes. Porter’s model stands out as the one single theory that best predicts international trade.

E. Yes. Porter’s model, like the Heckscher-Ohlin theory, offers an accurate prediction of international trade patterns.