d skills and research facilities (Porter 1990).
要素条件是从“生产要素的特征、创造要素的过程及其与企业竞争力的关系”分析的。这些因素被分类为“基本因素”，如自然资源、气候、位置和人口统计，以及“先进因素”，例如通信基础设施、尖端技能和研究设施。
For demand conditions, Michael Porter presented that home demand could provide driving force for enhancing competitive advantage, because customers' demands could exert pressure to the firms (Porter 1990).
对于需求条件，Michael Porter提出，家庭需求可以为增强竞争优势提供动力，因为客户的需求可能会对公司施加压力。
Source: Porter M, The Competitive Advantage of Nations, The Macmillan Press LTD, London, 1990
With respect to related and supporting industries: Porter stated that whether an industry has competitive advantages is closely associated with its related and supporting industries. Usually a successful industry would collectively develop with a cluster of related and supporting industries instead of standing alone (Porter 1990).
关于相关产业和支持产业：波特指出，一个产业是否具有竞争优势与其相关产业和支撑产业密切相关。通常，一个成功的产业会与相关和支持产业集群共同发展，而不是单独发展。
Concern firm strategy, structure and rivalry, Porter identified that the different industrial characteristics within different countries determine the competitive advantages (Porter 1990). The characteristics include 'strategies, structures, goals, managerial practices, individual attitudes and intensity of rivalry within the business sector' (Grant 1991).
考虑到公司战略、结构和竞争，波特认为，不同国家的不同产业特征决定了竞争优势。这些特征包括“战略、结构、目标、管理实践、个人态度和企业内部竞争的强度”。
Chance plays a role in influencing the four direct variables and thus affects the competitive advantage. Additionally, government could provide chances and make challenges for industries even though it does not directly participate in industry competition (Porter 1990).
机会在影响四个直接变量中发挥作用，从而影响竞争优势。此外，即使政府不直接参与行业竞争，也可以为行业提供机会和挑战。
3. ANALYSIS ON CHINESE CASHEMRE INDUSTRY WITH CASE STUDY 中国羊绒产业的案例分析
3.1 Factor Conditions 因素条件
In the book of Competitive Advantage of Nations, Porter noted the variable of factor conditions could be hierarchically categorized as basic factors and advanced factors. The importance of basic factors is gradually reducing because the demands for basic factors have decreased along with the market globalization, which means multinational companies could purchase within the globalized market. Therefore, it is unstable to build competitive advantage on the basic factors (Porter 1990).
波特在《国家竞争优势》一书中指出，要素条件的变量可以分为基本要素和先进要素。基本要素的重要性正在逐渐降低，因为随着市场全球化，对基本要素的需求已经减少，这意味着跨国公司可以在全球化的市场中进行采购。因此，基于基本因素建立竞争优势是不稳定的。
From the point view of basic factors, China is preponderant in cashmere resources with the best quality of raw cashmere and strong product processing capacity. Meanwhile, China is a labour-intensive country thereby that is helpful in reducing labour cost and other integrated cost. In comparison with China, Scotland also possesses the advantaged cashmere resources, and the Scottish cashmere product is highly admired for its quality and finish. Although the labour cost in Scotland is not as low as in China, the Scottish cashmere industry performs much better than that in China. Therefore, basic factors are less important in determining the industrial competitiveness.
从基本因素来看，中国羊绒资源优势，原料羊绒质量最好，产品加工能力强。同时，中国是一个劳动力密集型国家，因此有助于降低劳动力成本和其他综合成本。与中国相比，苏格兰也拥有得天独厚的羊绒资源，苏格兰羊绒产品的质量和光洁度备受推崇。尽管苏格兰的劳动力成本没有中国低，但苏格兰羊绒行业的表现要比中国好得多。因此，基本因素在决定产业竞争力方面不太重要。
While advanced factors are of importance to gain competitive advantage. Advanced factor require ambitious and continuous investment to sophisticated labour and technology expenditure. If a country would like to establish formidable and sustainable industrial competitive advantage through the variable of factor conditions, it must develop the advanced factors rather than basic factors. Unlike basic factors, advanced factors cannot be purchased but have to be developed through investment (Porter 1990).
而先进因素对于获得竞争优势至关重要。先进因素需要对复杂的劳动力和技术支出进行雄心勃勃的持续投资。如果一个国家想要通过要素条件的变化建立强大和可持续的产业竞争优势，它必须发展先进的要素而不是基础要素。与基本要素不同，先进要素不能购买，但必须通过投资开发。
From the point view of advanced factors, in China the capacity of independent innovation needs improvement for cashmere firms. Because the Chinese cas
