COMPARATIVE AND ABSOLUTE ADVANTAGE OF SWITZERLANDProject of International Business & WTO

Presented By:

Arslan Ahmed BBA

International Islamic University, Islamabad

H-10

Selected Country

Switzerland

Country Advantages

Top pharmaceutical companies(Medicament)

Swiss Watches Swiss chocolate Swiss is also popular for

its Secretive banking Sector

It’s also popular for Hospitality Sector

Tourism industry Direct Democracy Location (land

locked) Hydropower Agriculture

Products

Comparative Advantage Absolute Advantage

Comparative Advantage

Medicament (Pharmaceutical):  It contributes to 5.7% of the GDP Contributes to 30% of the exportations Employs about 135'000 people Some popular pharmaceutical companies are:

 Novartis (Sandoz), Hoffmann-La Roche, Basilea Pharmaceutica, Actelion andStraumann, Merck Serono (Serono), Ferring Pharmaceuticals, Debiopharm, Nycomed, Janssen-Cilag, Galderma,Mondobiotech, Naari, Weleda, Octapharma  and Frewitt.

Factor Conditions

Firm Strategy,

Structure, and Rivalry

Demand Conditions

Related and Supporting Industries

Diamond Porter’s Model

Factors of Production

Natural resources Switzerland is an important research location for the chemical

and pharmaceutical industry. The number of Nobel prizes awarded to chemists, biologists and physicians attest the internationally outstanding quality of research in Switzerland.

Labor Switzerland’s economy is based on a highly qualified labor force

performing highly skilled work

Capital 44 % of total private research spending in the Swiss industry Switzerland's R&D spending sits at 2.7 per cent of its GDP

Entrepreneurship As number of noble prizes is won by Swiss in this industry so

entrepreneurs are motivated

Information Switzerland come on 3rd number in world ranking in the use of

technology

Firm Strategy, Structure & Rivalry Firm Strategy

Commercial excellence, launching effective products irrespective of price factor

Structure The country pharmaceutical industry posses

horizontal structure, because of which this industry is booming day by day

Rivalry Rivalry for Swiss medicine industry is Germany,

France & Ireland

Demand Condition

Only approximately 5 % of the sales are in the home market; 95 % of the industry's production are exported

Europe and America each share about 40 % of the sales, while Asia takes in 23 %

Switzerland is number 8 among the biggest export nations

Related & Supporting Industries Human or animal blood prepared for therapeutic

uses Medical,surgical,dental or vet instruments Antibiotics Nucleic acids and their salts Machines for the removal of material by laser or

other optic means Carboxyamide-function compounds Orthopedic appliances, including crutches;

splints and other fracture appliances; artificial parts of the body; hearing aids

Question & Answer Session