If a nation has superior conditions in which to grow coffee beans and firms are able to grow them at very low costs, which of the four major factors…

Choice "a" is correct. If a nation has a strong set of factors of production (such as low cost, high

quality raw material inputs), that are required in a given industry, it will fare better with regard to

competitive advantage.

Choice "b" is incorrect. Conditions of domestic demand relate to the nation's domestic demand for

the product, which is directly related to the ability of the nation to fare better with regard to

competitive advantage.

Choice "c" is incorrect. The factor of related and supporting industries deals with whether there are

suppliers of material inputs that exist within a nation or whether there are rival firms who are

competitive in the international environment, both of which would increase the nation's competitive

advantage.

Choice "d" is incorrect. The factor of firm strategy, structure, and rivalry relates to the practices of a

nation with respect to how the companies are managed and organized, long with the laws of the

nation that regulate the formation of the companies, and how intense the rivalry is with respect to

competing firms in the nation.