Porter Maintains That Two Additional Variables Can Influence the "Diamond

question 74

Multiple Choice

Porter maintains that two additional variables can influence the "diamond" of attributes in important ways.These two variables are _____ and ______.

• A)entrepreneurship;strategic trade policies
• B)innovation;entrepreneurship
• C)absolute advantage;PPF
• D)chance;government

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Definitions:

Bankruptcy

The legal status of a person or entity that cannot repay the debts it owes to creditors.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock and often pays dividends.

Coupon Bond

A type of bond that pays the holder a fixed interest rate (coupon) over its entire term and repays the principal at maturity.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, accounting for both interest payments and the adjustment of the bond price to its face value.