RETL 485 quiz 3
Which of the following is NOT true regarding basic vs. specialized factors?
-Basic factors are factors that are generalized, inherited, and created without much difficulty. -Specialized factors are factors that are developed and advanced. -Examples of basic factors are labor size, labor cost, land, and natural resources. -Basic factors are more important than specialized factors for creating national competitiveness. -Examples of specialized factors are skilled labor, strong work culture, advanced knowledge, capital market, and infrastructure. Correct: Basic factors are more important than specialized factors for creating national competitiveness.
Which of the following is NOT true regarding Porter's diamond model?
-It explains how firms gain superior positions of global competitiveness in certain sectors of the country. -The attributes in the diamond model are independent of each other and rarely influence each other. -It identifies four key attributes and two additional factors that determine national competitiveness. -It explains why firms or industries from certain nations are more competitive than others. Correct: The attributes in the diamond model are independent of each other and rarely influence each other.
Which of the following is (are) examples of chance events that might affect a firm's competitiveness in the global market?
-Natural disaster, war, and terrorism -Political decisions by foreign governments -Technological breakthrough / new inventions -All of the above Correct: All the above
In terms of Porter's diamond model, which of the following would be a demand condition for the chocolate industry in Switzerland?
-Switzerland possesses a number of secret recipes for chocolate making. -Switzerland consumers are particularly discerning about chocolate. -Switzerland has a network of firms that support each other in becoming stronger as a whole in the chocolate industry. -Switzerland has a number of very strong competing firms in the chocolate industry. Correct: Switzerland consumers are particularly discerning about chocolate.
Which of the following is NOT true regarding the diamond model?
-The creation of business/industry clusters within a nation increases national competitive advantage. -Differences in firm strategies and firm structure determine national competitiveness. -Having no domestic rivals is better in the long run. -The presence of related and supporting industries creates national competitive advantage. Correct: Having no domestic rivals is better in the long run.
Which of the following is NOT one of the ways to apply the diamond model?
-The model can be used to analyze a firm's ability to function in a national market. -The model can be used to analyze the ability of a domestic firm/sector to compete in an international market. -The model can be used as a comparative analysis tool in recognizing which country a firm is suited to expand into. -All of the above are true. Correct: All of the above are true.
Which of the following is (are) examples of factor conditions under the Porter diamond model?
-The presence of internationally competitive related and supporting industries -The nation's stock of knowledge -The demand in the home market -All of the above Correct: The nation's stock of knowledge
Countries with selective disadvantages in basic factors cannot build sustainable competitive advantage
-True -False Correct: False
The size of the home demand is more important than the composition of the home demand for creating national competitiveness.
-True -False Correct: False
Which of the following is NOT a case in which government can act as a catalyst?
-When it encourages joint ventures with foreign firms -When it stimulates local rivalry by preventing the firms from competing unfairly -When it raises import duties to protect domestic firms from foreign competition -When it encourages firms to improve their performance by enforcing strict product standards Correct: When it raises import duties to protect domestic firms from foreign competition