Which of the Following Is True of the Demand Conditions

Multiple Choice

Which of the following is true of the demand conditions described in Porter's diamond model?

A) Early market saturation puts extreme pressure on a company to expand, which leads to inappropriate establishment in foreign countries that destabilize the company.
B) Early home demand fails to anticipate international demand and hence gives foreign rivals the advantage of getting established in an industry sooner than local firms.
C) Slow home-market growth is an incentive for companies to invest in and adopt new technologies, and to build large, efficient facilities.
D) The size and pattern of growth of home demand are important only if the composition of the home demand is sophisticated and anticipates foreign demand.