Information: Marmite is a british food spread similar to peanut butter and nutel
ID: 1140804 • Letter: I
Question
Information:
Marmite is a british food spread similar to peanut butter and nutella. It is fairly popular and mainly common in Britian, however, uncommon in places like India. The questions address CSA's and FSA's which stand for Country Specific Advatnages and Firm Specific Advantages respectively.
CSA's are strengths or benifits specific to a certain country or region that can result from its competitive location, labor force, unique resources, ect.
Which of the following discussions on country-specific advantages (CSAs) is correct? O CSAs do not explain why a firm is successful CSAs are unique to a firm, and you need to be part of the firm to enjoy them. CSAs are shared by many competitors in the same country 0 CSAs are part of firm-specific advantages (FSAs), just that they are bounded by a country's unique contexts.Explanation / Answer
1. c -CSAs are shared by many competitors in the same country.
All the firms producing Marmite in UK enjoy the country specific advantages, while competing for the same market.
2. c - There is a large consumption of breakfast spread in UK.
This is the best example of Marmite's CSA in UK. Because people in UK consume breakfast spreads,Marmite adds to the variety and creates a market for itself. Places where such spreads are traditionally not consumed would not provide a market for Marmite.
3. a - Consumers seek nutrition and health.
The above is NOT a CSA about India for Marmite. People in India generally have traditional home-cooked meals for breakfast ,which are high in nutrition. Marmite does not provide that.The fact that consumers seek nutrition is thus not a country specific advantage about India for Marmite.
4. b- Consumers' response to salty taste of Marmite in the spread form.
The other three are examples of CSA.