Question

Japan, due to a lack of undeveloped land, would be an unusual choice of location for a u.s. cattle company to set up local grazing operations. this limiting factor would be identified in what part of porter's determinants of national advantage?

a. demand conditions

b. firm strategy, structure and rivalry

c. factors of production

d. related and supporting industries

Answer 1

It would be indentified as C) Factors of Production

The Factors of production are labor, capital and land (some textbooks will only list labor and capital, with land being part of the capital category). The question is referring to Japan's lack of territory available for cattle production as a limiting factor for a cattle company to establish a production facility there. Therefore, the limiting factor, land, is a limitation of the factors of production.