An industry researcher has discovered that people from Indiana tend to prefer wine over other alcoholic beverages, but that the Indiana climate is not generally favorable to wine production, particularly compared to California, Australia, or France, and that there are few local wineries. In this example, according to the diamond of national competitive advantage, which of the following conditions is met for industry favorability?

A.

Factor conditions

B.

Demand conditions

C.

Firm strategy, structure, and rivalry

D.

Local government support for industry

E.

Related and supporting industries