Chpt_5r3 - products from those industries where all four...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
Chpt 5.3
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Advanced Factor Endowments Communications Skilled labor Research Technology Education
Background image of page 2
Demand Conditions Demand: creates capabilities creates sophisticated and demanding consumers Demand impacts quality and innovation
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Related and Supporting Industries Creates clusters of supporting industries that are internationally competitive Must also meet requirements of other parts of the Diamond
Background image of page 4
Firm Strategy, Structure and Rivalry Long term corporate vision is a determinant of success Management ‘ideology’ and structure of the firm can either help or hurt you Presence of domestic rivalry improves a company’s competitiveness
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Porter’s Theory- Predictions Porter’s theory should predict the pattern of international trade that we observe in the real world Countries should be exporting
Background image of page 6
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 8
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: products from those industries where all four components of the diamond are favorable, while importing in those Implications for Business • Location implications: – Disperse production activities to countries where they can be performed most efficiently • First-mover implications: – Invest substantial financial resources in building a first-mover, or early-mover advantage • Policy implications: – Promoting free trade is in the best interests of the home country, not always in the best interests of the firm, even though many firms Looking Ahead to Chapter 6 • The Political Economy of International Trade – Instruments of Trade Policy – The Case for Government Intervention – The Revised Case for Free Trade – Development of the World Trading System...
View Full Document

This document was uploaded on 03/14/2011.

Page1 / 8

Chpt_5r3 - products from those industries where all four...

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online