Which Theory Is Based on the Notion That Competitive Advantage

question 63

Multiple Choice

Which theory is based on the notion that competitive advantage is dependant on the four interacting aspects of factor endowments,domestic demand,firm strategy,and related and supporting industries?

• A) Strategic trade theory
• B) Product life cycle theory
• C) Comparative advantage theory
• D) National competitive advantage of industries theory

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Definitions:

Reciprocal Service

A mutual exchange of services or resources between two parties or departments within an organization.

Mutual Service

A collaborative arrangement where organizations or individuals provide services to each other for mutual benefit, often without monetary exchange.

Reciprocal Approach

A method used in managerial accounting to allocate costs among departments or units when there are mutual services provided between them.

Support Department Costs

Costs incurred by departments that do not directly produce goods or services but provide support to other departments that do.