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:

Favorable Variances

Variances that occur when actual costs are less than standard or budgeted costs, or actual revenues exceed expectations, benefiting the company's financial performance.

Unfavorable Variances

Situations where actual costs are higher than planned or budgeted costs, or actual revenue is lower than expected.

Management By Exception

A management strategy where only significant deviations from planned results are brought to the attention of management, focusing efforts on areas that are not performing as expected.

Standard Costs

Preset costs established for the manufacture of a product, including direct materials, direct labor, and overhead expenses, against which actual costs are compared.