Porter's National Competitive Advantage Theory

Question 1

He developed a new model to explain national competitive advantage in 1990.

Answer 1

Michael Porter

Question 2

Four stages of development in Porter theory

Answer 2

Development based on production (factors)
Development based on investment (capital)
Development based on innovation (creativity)
Development based on prosperity (economic growth and development)

Question 3

Porter’s Diamond

Answer 3

Local market resources and capabilities
Local suppliers and complementary industries
Local film characteristics
Local market design conditions

Question 4

Local market resources and capabilities (factor conditions)

Answer 4

Human resources
Material resources
Investments in education
Technology
Infrastructure

Question 5

If demand for a product is more in domestic market, it can influence the demand of customers in the foreign market.

Answer 5

Local market demand conditions

Question 6

Local firm characteristics

Answer 6

Firm strategy
Industry structure
Industry Rivalry

Question 7

Cost advantage + Quality Advantage=

Answer 7

Competitive advantage

Question 8

Known as Poster’s diamond

Answer 8

The competitive advantage of Nations