lec 2 Flashcards
components of porters diamond of national competitive advantage
company strategy structure and rivalry
demand conditions
related and supporting industries
factor condtions
what are examples of factor conditions
natural resources
education and skill levels
wage rates
infrastructure
what is a example of related and supporting industies
the existance of supplier clusters
what are 3 examples of demand conditions
size of market
sophistication of the consumers
media exposure of products
what are 3 examples of company strategy adn structure and rivalry
number of companies in the same industry
intensity of the competition
public or private ownership
what is the most likely company strategy that will beat out local competition
innovation
why trade with other nations
other nations will have absoulte and comparative advantages in comparison
what is the theory of comparative advantage
a country should sell products to other countries that they produce the most effectively and efficiently in comparison to the other countries
what is the theory of absolute advantage
this is when a country has a monoploy on producing a specific product or can do it better then other countires
what type of companies are better at going international
technology companies or marketing based ones
- smaller home markets
- larger production capacities
what firms are able to accelerate the internationalization process
firms with key managers and well networked internationally.
what are some drivers of market globalization
- advances in tech
- reduced barrieres to trade
- industrilization of other counties
- integration of world finacial markets
what does globalization force companies to do to their value chain
it forces them to internationalize their value chain
what are the sixconsequences of globalization
contgion , loss of national sovereighty , loss of jobs , effect on the poor , effect on the natural environment , national culture
what is contagion
its the fast spread of monetary and financial crises
