What is the Cross-Market Subsidization for Emaar Properties (Real estate company

Question

What is the Cross-Market Subsidization for Emaar Properties (Real estate company Based in UAE)? Like what are the disapdavntages and advantages of it regarding:

- Currency exchange rate risks

- Differences in cultural, demographic, and market conditions

- Differences in government policies and economic conditions

- Industry competitiveness factors that vary from country to country

- Location-based advantages for certain countries

*Please note, there is not case study. it just just analzing the company in general.

Explanation / Answer

The diamond framework identifies demand conditions, factor conditions, related and supporting industries, firm strategy, structure and rivalry.

So the answer is option "a".

Factor conditions are human and physical resources. Demand condition in home market can create competitive advantages. Related and supporting industries can provide cost effective inputs. Firm strategy and rivalry, government and chance are other frameworks.

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