In Porter's Diamond, which of the following is included in advanced factor conditions?

• A. Related industries
• B. Firm strategy and rivalry
• C. Skilled workers
• D. Demand conditions

Answer: (C)

In Porter's Diamond, factor conditions are inputs a country uses to compete, and they’re split into basic and advanced. Advanced factor conditions cover high-quality inputs like skilled labor, sophisticated technology, and strong scientific capabilities. Skilled workers fit here because they provide the advanced human capital that enables high productivity, innovation, and the ability to adopt new processes and technologies.

The other options belong to different parts of the model: related and supporting industries describe the presence of neighboring industries that supply inputs; firm strategy, structure and rivalry concerns how firms compete; and demand conditions look at the nature of domestic demand and customer sophistication.