Which of the following is true about the determinants of national competitive advantage?
A) The presence of strong competitors in a nation adversely affects national competitive advantage.
B) The presence of demanding customers pressures firms to innovate faster and produce better products.
C) Demand conditions describe the nation's position in factors of production, such as labor, natural resources, capital, technology, entrepreneurship, and know-how.
D) Vigorous competitive rivalry among firms lowers national innovativeness.
Question 2
Advances in communications and transportation technology have changed the internationalizatio n tendencies of firms by ________.
A) establishing a cultural presence in a foreign market prior to establishing a facility
B) providing accessible information about a product to customers but at a significantly higher cost
C) focusing primarily on the need for local intermediaries to sell products in foreign markets
D) reducing the risk and difficulty of doing business in markets with unfamiliar cultures
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