Final answer:
Porter's Diamond Model describes national competitive advantage based on factor conditions, demand conditions, related industries, and firm strategy, structure, and rivalry, excluding substitute products and being influenced by chance events.
Step-by-step explanation:
Porter's Diamond Model of national advantage claims that the ability of local firms in a country to utilize the country's resources to gain a competitive advantage is based on four broad attributes: factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry. This model does not include substitute products as a determinant, nor does it state that it is unaffected by chance. Instead, chance events are considered to be one of the auxiliary factors that can influence the national diamond. Therefore, references to intraindustry trade and the link with relative levels of per capita income is not part of Porter's model but a separate economic concept. As for the claim that the Porter's model is not affected by chance, this is incorrect, as chance is acknowledged in the model as playing a role in shaping the competitive advantage of nations. Hence, the correct answer to the question is E. Two of the statements in the question, namely A and B, are incorrect in the context of Porter's diamond model.