What is the benefit of Porter’s diamond?
Tran
What is the impact of factor conditions within Porter’s diamond?
Presence of high quality specialised inputs available to
firms:
human resources,capital resources, natural
resources, physical infrastructure, administrative
infrastructure, information infrastructure, scientific
infrastructure
What is the impact of firm strategy and rivalry within Porter’s diamond?
Firm strategy, structure, and rivalry refer to the basic fact that competition leads to businesses finding ways to increase production and to the development of technological innovations.
Japan has high-priced land and so its factory space is at a premium price. This leads to just-intime
inventory techniques
Italian tile industry: Low entry barriers to market in the tile industry. Rivalry became very intense.
Breakthroughs in both product and process technologies
What is the impact of demand conditions within Porter’s diamond?
Sophisticated and demanding local customer(s)
German people have a high sophisticate in Cars
Japan‘s knowledgeable buyers of cameras made that industry to innovate and growth tremendously
French/Italian wine industry: The French and Italians are sophisticated wine consumers. These consumers force and help French and Italian wineries to produce high quality wines
What is the impact of related and supporting industries within Porter’s diamond?
Access to regional based supliers and related firms. Presence of Clusters not isolated industries.
Example automotive industrie =
Bosch, Sheffer , Continental
China with Tv Panel
Why do you find chance and government within Porter’s diamond?
It is also important that the goverment plays it apart. A result of this the country has no chance to grow.
Example=
IRAN
What are regional clusters and why are they important for national competitiveness?
Expertise is concentrated in one area.
Regional clusters are important for national competitiveness because they can drive innovation and economic growth. The close proximity of businesses within a cluster allows for the exchange of ideas, the sharing of resources, and the creation of a skilled labor pool. This can lead to increased productivity and competitiveness within the industry, which can in turn drive economic growth.
Silicon Valley / USA (Computer),
Bangalore / Indien (Software-Outsourcing),
Hollywood / USA (Film- und Medienindustrie)
Toulouse / Frankreich (Raumfahrt).
What is mercantilism and which nations follow such a policy
National prosperity (Nationaler Wohlstand) is the result of t positive balance of trade . max. Export min. Import
Germany and China
What is the difference between absolute and comparative national advantage?
Absolute advantage principle:
a country should produce only those products in which it has absolute advantage or can produce using fewer resources than another country
Comparative advantage principle:
it is beneficial for two countries to trade even if one has absolute advantage
in the production of all products; what matters is not the absolute cost of
production but the relative efficiency with which it can produce the product
Make an example for two nations with distinct absolute international advantages
Saudi Arabia with Oil
Gas Russia
Columbia with coffee
What is the basic idea of the Economies of Scale Theory?
reduce productions cost through higher production volume. Fix cost divided on the products. Increasing the experience throught higher production
Make an example comparative advantages in the sense of Ricardo
One Nation is more efficient in producing Cars and the other Nation is more efficient in producing Machines, it still make sense to trade because each of the Nation is concentraded on a product
What is the technology gap theory all about?
The technology gap theory is a theory that explains how countries that are behind in terms of technological development can catch up with countries that are more technologically advanced. According to the theory, countries that are behind in terms of technology can narrow the gap by adopting and adapting existing technologies from more advanced countries, rather than trying to develop new technologies from scratch.
Explain an example of an existing technology gap in real life
What is the difference between the imitation and the demand gap?
The imitation gap refers to the difference between a country's technological capabilities and those of the most technologically advanced countries. The imitation gap can be narrowed through efforts to adopt and adapt existing technologies from more advanced countries, rather than trying to develop new technologies from scratch.
The demand gap is the time elapsing between the introduction of the new good in the innovating country and the appearance of a demand for it in other countries (some time elapses before the other countries' consumers come to know of the new good and acquire a taste for it.
Explain the general concept of the product life cycle theory.
The product life cycle theory is a model that explains the stages of a product's development and the changes that occur in the marketing and business strategies required to sell the product. According to the theory, a product's life cycle consists of four stages: introduction, growth, maturity, and decline.
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