Factors of Production in Porter's Model of International Competitive Advantage

question 43

Multiple Choice

Factors of production in Porter's model of international competitive advantage include all of the following EXCEPT:

• A) labor.
• B) capital.
• C) infrastructure.
• D) technology.

Define and recognize instances of disintermediation in marketing channels.

Identify the drawbacks and strategies of intensive distribution.

Differentiate between types of products based on consumer behavior and demand.

Understand the rationale behind offering deep and wide assortments in a product portfolio.

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Definitions:

Capital Employed

The total amount of capital used for the acquisition of profits by a firm or project, including the value of all assets employed in a business.

Production Function

A formula that specifies the output generated by a firm from varying combinations of factor inputs.

Marginal Cost

The supplementary expense incurred by fabricating one more unit of a product or service.

Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.