Every Day,in a Third-Class Carriage of the Express Train That

question 194

Multiple Choice

Every day,in a third-class carriage of the express train that rolls between Bombay and Ahmedabad,plainly dressed couriers carry precious cargo: diamonds.Rough gems are imported to Bombay from dealers in London,Antwerp,Tel Aviv,and New York,taken by these couriers to cutting and polishing centers in Gujarat state,and then carried back to Bombay to be reexported to the world.This system,based on trust,secrecy,and skilled low-cost labour,has been working for half a century.It has helped make India the world's premier center for diamond cutting and polishing.Nine out of every 10 stones sold in the world pass through India,making diamonds that country's largest export at $6.6 billion a year.This ability to use its skilled labour as a resource is an example of what Michael Porter would term:

• A)structural conditions.
• B)demand conditions.
• C)socio-cultural conditions.
• D)factor conditions.

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Definitions:

Stable Market Value

Refers to assets or securities that demonstrate low volatility and maintain their value over time in various market conditions.

Floating-Rate

An interest rate that fluctuates over time with the market or an index, commonly used in variable-rate loans and adjustable-rate mortgages.

Interest Rates

The percentage charged on borrowed money, or earned through lending money or making investments, over a specified period.

Income Bond

An income bond is a type of bond that only pays interest if the issuing company is profitable, making it a riskier investment than bonds with guaranteed interest payments.