Which of the Following Is True About the Determinants of National

question 70

Multiple Choice

Which of the following is true about the determinants of national competitive advantage?

• A) The presence of strong competitors in a nation adversely affects national competitive advantage.
• B) The strength and sophistication of buyer demand facilitates the development of competitive advantages in particular industries.
• C) Demand conditions describe the nation's position in factors of production, such as labor, natural resources, capital, technology, entrepreneurship, and know-how.
• D) Vigorous competitive rivalry among firms lowers national innovativeness.

---

Definitions:

Debt Financing

A method of raising capital through borrowing money that must be repaid, typically with interest.

Going into Debt

The state of owing money to another person or entity as a result of borrowing.

Financial Institution

An establishment that conducts financial transactions such as investments, loans, and deposits.

Equity Financing

The process of raising capital through the sale of shares in a company, providing investors with partial ownership.