Answer:
Step-by-step explanation:
American economist Michael Porter (1947) in his "The Competitive Advantage of Nations" (1989) concludes that the competitiveness of a nation relies on the ability of its industry to innovate and update. Porter schemed a diamond diagram where he pointed out the 4 main characteristics of a country favorable to the development of industry:
- Factor conditions: production factors that involve sustained and large investments and are specialized are the most important factors.
- Related and supporting industries: The flow of information and the technological exchange fasten creativity and upgrade.
- Strategy, structure, and rivalry: competitiveness in a particular industry results from a convergence of country-favored management practices and organizational models.
- Demand conditions: nations are gaining competitive advantage in sectors where consumers are pushing companies to innovate.