Which of the Following Statements Is Most True with Regard

question 16

Multiple Choice

Which of the following statements is most true with regard to Strategy,Structure,and Rivalry in Michael Porter's "diamond" determinants of competitive advantage?

• A)The context of a firm's home market includes foreign capital markets
• B)Although local rivalry may hold down profitability in local markets, firms that survive vigorous local competition are often less efficient and innovative than are international rivals that emerge from softer local conditions
• C)Local rivalry tends to affect the rate of innovation in a market far more than foreign rivalry does
• D)Foreign rivalry tends to affect the rate of innovation in a market far more than local rivalry does
• E)The context of a firm's home market includes foreign management practices

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Definitions:

Sale and Leaseback

A financial transaction where one sells an asset and immediately leases it back from the buyer, typically used for freeing up capital tied up in assets.

Providers of Financing

Entities or individuals that supply funds to another party, typically in the form of loans or investments.

Inflation

The rate at which the general level of prices for goods and services is rising, subsequently eroding purchasing power.

Legal System

The comprehensive system of rules and principles, typically enforced through a set of institutions, governing a society and controlling its activities.