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Which factor endowment would be classified as a basic factor by Michael Porter?

A. communication
B. infrastructure
C. natural resources
D. skilled labor
E. technological know-how

User DoDo
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Answer:

The correct answer is letter "C": natural resources.

Step-by-step explanation:

Factor endowment refers to the factors of production -land, labor, capital, and entrepreneurship- a nation has available for manufacturing. Countries with more factors of production available tend to be richer than those that do not. Possessing more factor endowments available can also play a key role for countries to establish a comparative advantage compared to other nations.

Therefore, American economist Michael E. Porter (born in 1947) is likely to consider natural resources a basic factor endowment while skilled labor force, for instance, would be considered as an advanced factor of production.

User Dwwork
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