The I$/$O and resource$-$based models contain many of the same steps. One clear difference between the two models is the resource$-$based model starts by looking at the internal strengths and weaknesses of a firm, while the I$/$O model begins with an examination of the external environment. Another key difference is the resource$-$based model identifies an attractive industry much earlier in the process than does the I$/$O model.

True

False

Question $26(1$ point$)$

What is the relationship between a firm's industry environment and the firm's earning potential?

a$)$ A firm cannot influence the industry environment, and must focus on other factors in order to achieve above$-$average returns.

b$)$ The more a firm can neutralize competitors' advantages, the greater its chances are for above$-$average