International business class (Discussion Board) Assignment - 1

International business class (Discussion Board) - Assignment Example Demand conditions simply meant the domestic demand for a product. Demand encourages production because of the incentive of profit. The more the company creates a particular product, the more they become good at it. Related supporting industries are complementary firms that make an industry benefit through it and enhances its competitiveness. Firms strategy, structure and rivalry simply meant the regulatory conditions in a certain country that could encourage innovation and rivalry that would ultimately make firms competitive. If Porter’s theory is to be taken as an absolute truth especially with his factor conditions that the availability of resources would make a country competitive, then Africa would have been one of the richest countries in the world because almost all raw materials in production can be found there. But as we already know, Africa is one of the poorest continent in the world and this posits that natural resources alone is not enough to make a country competitive debunking Porter’s first notion of factor condition as a prelude to national