According to Michael Porter, government can influence each of the four

QUESTION

According to Michael Porter, government can influence each of the four components of Porter’s diamond—either positively or negatively.

Indicate whether the statement is true or false.

 

ANSWER

TRUE
Porter contends that government can influence each of the four components of Porter’s diamond—either positively or negatively. Factor endowments can be affected by subsidies, policies toward capital markets, policies toward education, and so on.

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