Which of the Following Observations Is Consistent with Michael Porter's

question 6

Multiple Choice

Which of the following observations is consistent with Michael Porter's theory of national competitive advantage?

• A) Factors such as domestic demand and domestic rivalry determine nations' dominance on production.
• B) Countries should produce only those goods for which they have a comparative advantage.
• C) Interplay between the factors of production cause international marketing decisions.
• D) International differences in labor productivity determine nations' supremacy in production.

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Definitions:

Equivalent Units

A method used in managerial accounting to calculate the number of complete units that could have been produced given the total amount of materials and effort expended.

Production Period

The Production Period is the phase in a manufacturing process when resources are used to convert raw materials into finished products.

Output

The quantity of goods or services produced in a given time period by a company, industry, or country.

Job Order Cost System

An accounting system that accumulates manufacturing costs separately for each order, suitable for businesses producing customized products or offering specialized services.