Answer:
Skilled labor is an advanced factor endowment
Explanation:
According to porter's diamond about national advantage, the potential of factor endowments is increased by four factors that increases the nation advantage, these factors are: factors condition; firm structure, strategy and rivarly; demand condition; related and supporting industries.
Every factor leads changes on the national advantage, as an example, demand conditions because when the market conditions are more demanding the nation is willing to be more competitive, it pursues a best development on products and specialized labor skills.
Factor Condition (FC), which is the state of factors of production in an industry such as labor and infrastructure.
Factor conditions refer to inputs used as factors of production, such as labor, natural resources, capital, and infrastructure. Poter's argument, the main key factor of production is "created" not obtained from inheritance. Furthermore, the scarcity of resources (factor disadvantage) often helps countries become competitive. Too much (resources) has the possibility of being wasted, when scarce can encourage innovation.
Demand conditions, referring to the availability of a domestic market that is ready to play an important element in generating competitiveness. Such a market is characterized by the ability to sell superior products, this is driven by the demand for quality goods and services and the close relationship between the company and the customer.
Related and Supporting Industries, referring to the availability of a series and the existence of strong links between supporting industries and companies, this relationship and support are positive which leads to an increase in the company's competitiveness. Porter developed a model of this type of condition factor with industrial clusters or agglomeration, which benefits the potential technology knowledge spillover, closeness to consumers to further increase market power.
Firm Strategy, Structure, and Rivalry, refers to the strategies and structures that exist in most companies and the intensity of competition in certain industries. Strategy factors can consist of at least two aspects: capital markets and individual career choices. Domestic capital markets influence corporate strategy, while individuals often make career decisions based on opportunities and prestige. A country will have competitiveness in an industry where key personnel is considered prestigious. The structure follows the strategy. The structure was built to carry out the strategy. High-intensity competition (rivalry) encourages innovation.
Learn More
The Porter Diamond Theory https://brainly.com/question/13017973
Factor Condition https://brainly.com/question/13017973
Details
Grade: High School
Subject: Business
Keyword: Porter, factor, labor
