The Role of Chance
Chance events, that is, occurrences usually outside the power of firms, also
play an important role, usually by creating discontinuities that allow shifts in
competitive position. These events, which include inventions, sudden rises in input
prices, surges of demand, and political decisions by foreign governments, among
others, have a diverse impact on industries of different countries. The way national
firms exploit the advantages, or circumvent the disadvantages, is determined by the
condition of the diamond determinants.
The Role of ChanceChance events, that is, occurrences usually outside the power of firms, alsoplay an important role, usually by creating discontinuities that allow shifts incompetitive position. These events, which include inventions, sudden rises in inputprices, surges of demand, and political decisions by foreign governments, amongothers, have a diverse impact on industries of different countries. The way nationalfirms exploit the advantages, or circumvent the disadvantages, is determined by thecondition of the diamond determinants.
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