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Tcecarenko [31]
3 years ago
12

Which theory is based on the notion that competitive advantage is dependent on the four interacting aspects of factor endowments

, domestic demand, firm strategy, and related and supporting industries?
Business
1 answer:
Sveta_85 [38]3 years ago
3 0

<u>Answer: </u>

The national competitive advantage of industries theory is the one that is based on the notion that competitive advantage is dependent on the four interacting aspects of factor endowments, domestic demand, firm strategy, and related and supporting industries.

<u>Explanation: </u>

  • Some countries bear a competitive advantage over other countries in producing certain commodities owing to the availability of resources in abundance that are required to produce the given commodity within the domestic boundaries.
  • This advantage allows certain countries to fetch a greater profit than other competitor countries from trading in the same commodity as the initial cost of producing the commodity is low in some countries and high in some other.
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