comparative advantage of switzerland
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Comparative advantage of switzerlandTRANSCRIPT
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