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Which of the following is true about the determinants of national competitive advantage? Question 5 options:...

Which of the following is true about the determinants of national competitive advantage?

Question 5 options:

Demand conditions describe the nation's position in factors of production, such as labor, natural resources, capital, technology, entrepreneurship, and know-how.


Vigorous competitive rivalry among firms lowers national innovativeness.


The presence of strong competitors in a nation adversely affects national competitive advantage.


The presence of demanding customers pressures firms to innovate faster and produce better products

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Answer #1

The presence of demanding customers pressures firms to innovate faster and produce better products

(Demand customers pressurises firms to innovate and producer better products at lesser costs. So, we can say that the sophistication and strength of customers in particular industries drives comparative advantage.)

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