Question

Discuss the impact of a) domestic demand characteristics and b) domestic rivalry on the global competitiveness of companies located within a given nation.

Answer 1

A) domestic demand characteristics are decided by :-

1) what kind of of major locality it has- rural or urban.

2) what kind of major class the nation has- lower, middle.

If the major locality is urban the demand would be more as urban class people has desire to luxury as they have access to many things, unlike the rural people.

If the class of the nation in majority is upper middle of even middle it will have high demand throughout as middle class people do have their limitations but tend to extend their limit to earn and buy more unlike the lower class.

B) domestic rivalry has both positive and negative effect:-

Positive- more home for innovation.

Reasonable prices offered to customers.

Negative - compromise in the quality of the goods of services being offered.