There are four factors that leads to a nation's relative position of advantage; such as endowment, demand, related/support industries, and strategy/structure/rivalry.
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The actual four categories are strategy, structure and rivalry, demand conditions, related supporting industries, and factor conditions. The factor conditions, which is an element you don't have listed, are the conditions ...
This solution explains if the relative position of advantage question listed is true or false. A thorough explanation is provided.
It is sometimes easy to overlook the importance of productivity. National figures are often reported in the media. They may seem to be ho-hum; there's nothing glamorous about them to get our attention. But make no mistake; they are key economic indicators barometers, if you will, that affect everybody. How? High productivity and high standard of living go hand-in-hand. If a country becomes more service-based, as the United States has become, some (but not all) high-productivity manufacturing jobs are replaced by lower-productivity service jobs. That makes it more difficult to support a high standard of living.
Productivity levels are also important for industries and companies. For companies, a higher productivity relative to their
competitors gives them a competitive advantage in the market- place. With a higher productivity, they can afford to undercut competitors' prices to gain market share, or charge the same prices but realize greater profits! For an industry, higher relative productivity means it is less likely to be supplanted by foreign industry.
1.Why is high productivity important for a nation?
2. Why do you suppose that service jobs have lower productivity
than manufacturing jobs?
3. How can a company gain a competitive advantage by having
higher productivity than its competitors have?