competative advantege theory
TRANSCRIPT
![Page 1: Competative advantege theory](https://reader034.vdocuments.site/reader034/viewer/2022042607/55ad85e91a28abc6418b469e/html5/thumbnails/1.jpg)
![Page 2: Competative advantege theory](https://reader034.vdocuments.site/reader034/viewer/2022042607/55ad85e91a28abc6418b469e/html5/thumbnails/2.jpg)
David Ricardo, in 1817, enunciated hisrefinement ofSmith'sconcept bypostulating theprinciple ofcomparativeadvantage
![Page 3: Competative advantege theory](https://reader034.vdocuments.site/reader034/viewer/2022042607/55ad85e91a28abc6418b469e/html5/thumbnails/3.jpg)
"... the principle of comparative
advantage: a nation, like a person,
gains from the trade by exporting
the goods or services in which it has
its greatest comparative advantage
in productivity and importing those
in which it has the least
comparative advantage."
![Page 4: Competative advantege theory](https://reader034.vdocuments.site/reader034/viewer/2022042607/55ad85e91a28abc6418b469e/html5/thumbnails/4.jpg)
![Page 5: Competative advantege theory](https://reader034.vdocuments.site/reader034/viewer/2022042607/55ad85e91a28abc6418b469e/html5/thumbnails/5.jpg)
It states that a country will exportgoods that use itsabundant factorsintensively, andimport goods that useits scarce factorsintensively.
![Page 6: Competative advantege theory](https://reader034.vdocuments.site/reader034/viewer/2022042607/55ad85e91a28abc6418b469e/html5/thumbnails/6.jpg)
![Page 7: Competative advantege theory](https://reader034.vdocuments.site/reader034/viewer/2022042607/55ad85e91a28abc6418b469e/html5/thumbnails/7.jpg)
( The Diamond – Four Determinants of National Competitive Advantage)
![Page 8: Competative advantege theory](https://reader034.vdocuments.site/reader034/viewer/2022042607/55ad85e91a28abc6418b469e/html5/thumbnails/8.jpg)
a model that can help understand the comparative position of a nation in global competition.
![Page 9: Competative advantege theory](https://reader034.vdocuments.site/reader034/viewer/2022042607/55ad85e91a28abc6418b469e/html5/thumbnails/9.jpg)
1. Land
2. Location
3. Natural resources (minerals, energy)
4. Labor, and
5. Local population size.
![Page 10: Competative advantege theory](https://reader034.vdocuments.site/reader034/viewer/2022042607/55ad85e91a28abc6418b469e/html5/thumbnails/10.jpg)
groups of interconnected firms, suppliers, related industries, and institutions, that arise in certain locations
![Page 11: Competative advantege theory](https://reader034.vdocuments.site/reader034/viewer/2022042607/55ad85e91a28abc6418b469e/html5/thumbnails/11.jpg)
Factor conditions
Demand conditions
Related and supporting industries, and firm strategy
Structure and Rivalry
Four attributes of a nation comprise Porter’s Diamond of national advantage:
![Page 12: Competative advantege theory](https://reader034.vdocuments.site/reader034/viewer/2022042607/55ad85e91a28abc6418b469e/html5/thumbnails/12.jpg)
THE DIAMOND AS A SYSTEM
-the effect of one point depends on the others.
-it is a self-reinforcing system.
![Page 13: Competative advantege theory](https://reader034.vdocuments.site/reader034/viewer/2022042607/55ad85e91a28abc6418b469e/html5/thumbnails/13.jpg)
Thank you for attention!