Chapter 5 Global Business Today

908 words 4 pages
Andrea Innes
Review Questions
March 8, 2012

Global Business Management
Terri Brown

3. Unions in developed nations often oppose imports from low-wage countries and advocate trade barriers to protect jobs from what they often characterize as “unfair” import competition. Is such competition “unfair?” Do you think that this argument is in the best interests of (a) the unions (b) the people they represent (c) The country as a whole

The Comparative advantage theory says that if a country should specialize in producing those goods that it can produce most efficiently, while buying goods that it can produce relatively less efficiently from other countries. It also says that opening a country to free trade stimulates
…show more content…

Porter’s theory of nation competitive advantage argues that four broad attributes of a nation shape the environment in which local firms compete, and that these attributes promote or impede the creation of competitive advantages. These four attributes are: factor endowments, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry. It also argues that firms are most likely to succeed in industries in which the four attributes used together is best. The New Trade theory argues that because of too many substantial scale economies world demand will only support a few firms in many industries. The first-mover advantages are the economic and strategic advantages that add up to the early entrants into an industry. When qualities of a nation are conductive to the production of a product, and the manufacturers have had some events that provide them first-mover advantages the government policies should promote the building of national competitive advantages in that area. Some of the ways to do that are through R&D grants, policies towards education, lower tax and policies that favor the industry in capital markets. Through this the government is creating a base for comparative advantage.

8. The world’s poorest countries are at a competitive disadvantage in every sector of their economies. They have little to export. They have no capital; their land is of poor quality; they often have

Related

  • English as a Global Language – 2nd Edition – David Crystal Chapter 1 Summary
    2142 words | 9 pages
  • Financial Accounting: Introductory Section
    12960 words | 52 pages
  • Ethics and Corporate Social Responsibility in Driving Organizational Success for Multinational Companies in Oil/Mining Industry
    4566 words | 19 pages
  • Market Opportunities in E-Commerce, South Africa
    11771 words | 48 pages
  • Competitiveness. Its Advantages and Disadvantages
    6864 words | 28 pages
  • Midterm Econ102
    3963 words | 16 pages
  • Emergin Markets_Brazils Quest for Comparative Advantage
    1140 words | 5 pages
  • Management Information Systems
    5692 words | 23 pages
  • retailing and wholesaling
    5498 words | 22 pages
  • It Management
    6670 words | 27 pages