Which of the Following Statements Reflects Michael Porter's Theory Regarding

question 107

Multiple Choice

Which of the following statements reflects Michael Porter's theory regarding national competitive advantage?

• A)Clusters of strong suppliers can interfere with entry into a global market.
• B)A firm that succeeds in global markets has often left a domestic market because it was too competitive.
• C)A country's natural resources,education,and infrastructure can represent obstacles that are often difficult to overcome.
• D)Conditions such as the number and sophistication of domestic customers can affect demand for an industry's product.
• E)A nation's domestic workforce is more motivated to work for foreign corporations than its own.

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Definitions:

Operating Activities

Activities that relate directly to the primary business operations of an organization, such as sales, provision of services, manufacturing of goods, etc.

Depreciation Expense

The allocation of an asset's cost over its useful life, representing the wear and tear, deterioration, or obsolescence of the asset.

Cash Flows

The total amount of money being transferred into and out of a business, particularly in terms of liquidity and financial planning.

Noncash Asset

Assets that cannot be easily converted into cash, such as buildings, equipment, and inventory.