The Four Aspects of Porter's Model of National Competitive Advantage

question 95

Multiple Choice

The four aspects of Porter's model of national competitive advantage include all of the following EXCEPT the:

• A) Factor condition.
• B) Demand condition.
• C) Economic institutions.
• D) Supporting industry.

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Definitions:

Variable Costs

Costs that change in proportion to the level of goods or services produced by a business.

Net Operating Income

The total profit derived from a company's normal business operations after subtracting operating expenses but before taxes and interest.

Traceable Fixed Costs

Fixed costs that can be directly associated with a specific business segment, product, or department.

Financial Disadvantage

A situation in which a person or entity is at a deficit compared to others in terms of financial resources or capabilities.