Final answer:
The strongest indicator of global competitive success on the Porter diamond is domestic rivalry. This is because it encourages firms to innovate and become more efficient, allowing them to be better prepared for global markets.
Step-by-step explanation:
To determine which point on the Porter diamond of national advantage is the strongest indicator of global competitive success, it is important to understand the context of each point within the concept of competitive advantage. The Porter diamond suggests that domestic rivalry is a crucial driving force for innovation and improving competitiveness. Domestic rivalry (option c) propels firms to enhance their products and services to outperform their local competitors, leading to higher competitiveness on a global scale.
According to the Porter diamond, intense domestic competition drives firms to innovate and improve, which, when competing internationally, results in a more robust national advantage. The rationale behind this lies in the idea that local competitors push each other to higher standards, leading to an environment where only the most efficient and innovative survive. This competitive environment fosters the creation of leading-edge products and practices, preparing domestic firms for the rigors and challenges of global markets.
The interconnectedness and increase in global competition necessitate a robust domestic foundation to compete effectively. Therefore, domestic rivalry is intrinsic to fostering a climate where businesses are continuously driven to enhance their competitive edge, which is crucial for international success. Considering the aforementioned information, domestic rivalry (option c) emerges as the predominant factor for predicting global competitive success, as outlined in the Porter diamond model.