Question

Until the 1950s, most of the area rugs in the world were manufactured in Persia (Iran) and Pakistan. Artisans in these countries had developed techniques (dyes and knots) that were unique and that other production areas were not capable of reproducing. These areas enjoyed what Michael Porter would call an "absolute advantage". T/F

Answer 1

True. Until the 1950s, most area rugs in the world were manufactured in Persia (Iran) and Pakistan, which had an 'absolute advantage' due to their unique techniques.

Step-by-step explanation:

True. Until the 1950s, most area rugs in the world were manufactured in Persia (Iran) and Pakistan. These countries had developed unique techniques in creating area rugs, such as using special dyes and knots, which other production areas were not capable of reproducing. This gave them an 'absolute advantage', a concept introduced by Michael Porter. This advantage allowed Persia and Pakistan to dominate the area rug market during that time.