theories of trade
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Theories of Trade
7 Trade Theories
Mercantilism Theory
1. Mercantilism is the oldest International Trade Theory that found during 1630 by
2. William Petty, Thomas Mun and Antoine de Montchrtien.
3. The base of this theory was the commercial revolution, the transition from local
economies to national economies, from feudalism to capitalism, from a rudimentary
trade to a larger international trade.
4. Mercantilism is an economic theory that holds a countrys treasure primarily in the
form of gold constituted its wealth.
5. This theory says that countries should export more than they import, so they canreceive the value of trade surplus in the form of gold fro the countries that experience
Trade Deficit.
6. It superseded the medieval feudal organization in Western Europe, especially in
Holland, France, United Kingdom, Belgium, Portugal and Spain. The monarch
controlled everything. Their policy was to export in the countries that they controlled
and not to import (to have a positive Balance of Trade).
7. Exportinflow of gold and silver
Importoutflow of gold and silver
DefinitionMercantilism is an economic theory holds that the prosperity of a nation is dependent upon its
supply of capital, and that the global volume of international trade is unchangeable.
ExplanationTo encourage export, Government can impose tax or other charges on import. This can help
to promote sales and to earn more Gold or Foreign currency. It will help to prevent Trade
deficit and experience Trade Surplus.
The Suggestions by Mercantilism theory can be summarized as-
1. Country should have more Export than Import in Monetary Value
2. So country can experience Trade Surplus
3. Government can help to improve export by imposing tax and some other charges on
import4. Maintain favorable balance of Trade
5. Viewed trade as a zero-sum game rather than a positive-sum game
Decay of Gold Standard reduced the validity of this theory and then this theory was modified
and named as Neo-Mercantilism
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Example David Hume pointed out inherent inconsistencies- 1752England had trade surplus
over France
Inflow of gold and silver led to inflation in England and goods became costly. France
had advantage of cheaper goods. Fall in demand for British goods. Increase in demand for French goods
Finally English surplus was wiped out.
Absolute Cost Advantage Theory: Adam Smith (1776)
1. Adam Smith, the Scottish economist observed some drawbacks of existing
Mercantilism Theory of International trade and he proposed a new theory i.e.
Absolute Cost Advantage theory of International trade to remove drawbacks and to
increase trade between countries.2. In the second half of the XVIII century, mercantilist policies became an obstacle for
the economic progress. Adam Smith (father of liberalism and economical science)
brought the argument in his book The Wealth of Nations, published in 1776, that
the mercantilist policies favorised producers and disadvantaged the interests of
consumers.
Drawbacks of Mercantilism theory
Adam Smith observed following drawbacks of Mercantilism and Neo-mercantilism theory.
1. Mercantilism weakens a country.
2. Restriction on Free Trade decreases countrys wealth
Adam Smiths Theory (1776)
Adam Smiths theory starts with the idea that export isprofitable if you can import goods that
could satisfy better the necessities of consumers instead of producing them on the internal
market.
1. This theory is based on principle of division of labour(division of labor the separation of a work process into a number of tasks, with each task
performed by a separate person or group of persons.)
2. Free trade among countries can increase a countrys wealth.
3. Free trade enables a country to provide a variety of goods and services to its people by
specializing in the production of some goods and services and importing others.
4. Every country should specialize in producing those products at the cost less than that of
other countries and exchange these products with other products produced cheaply by other
countries.
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5. When one country produces one product at less cost and another country produces another
product at less cost, both can exchange required quantity and can enjoy benefit of absolute
cost advantage.
6. Adam Smith treated it as positive sum game.
The essence of Adam Smith theory is that the rule that leads the exchanges from any market,
internal or external, is to determine the value of goods by measuring the labour incorporated
in them.
Advantage of Skilled labour and specialization
1. ABSOLUTE COST ADVANTAGE:Reasons for Absolute Cost Advantage
A. SPECIALIZATION: Specialization of labour leads to higher productivity and less labour
cost per unit of output
B. SUITABILITY: Suitability of the skill of the labour of the country in producing certain
products
C. ECONOMIES OF SCALE: Economies of scale helps to reduce the labour cost per unit
of output.
2. NATURAL ADVANTAGE
Climatic conditions
Natural resources
Example: Indian Climate- Production of Rice, Wheat, Sweet Mangoes, Grapes, Tea,
Coconuts, Cashew nuts, Cotton etc.
Sri Lanka: Production of Tea, Rubber
USA: Production of Wheat
3. ACQUIRED ADVANTAGE
Technology
Skill development
Examples: Japan: advantages in steel production through the imports of both iron and coal
(Labor saving and material saving technology)
England: production of textiles,
France: Wine
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Assumptions of the Theory
1. Trade is between two countries
2. Only two commodities are traded
3. Free Trade exists between the countries4. The only element of cost of production is labour
Numerical Example
Output per one day of labour
India Japan
Pens 90 30
Mobiles 3 9
Production Possibilities: Ability of labour to produce different goods/services in a day
India Japan
One labour per day can produce either 90 pens
or 3 Mobiles
One labor per day can produce either 30 Pens
or 9 Mobiles
Absolute advantage in the production of PensAbsolute advantage in the production of
Mobiles
THE PRODUCTION POSSIBILITY FRONTIER
If India and Japan will exchange these products, both will get advantage.
India will export 60 Pens to Japan
Japan will export 6 Mobiles to India
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Ghana will produce (3/4th) i.e.15 units of cocoa and (1/4th) i.e. 3.75 units of rice and
South Korea producing 10 units of rice.
Total production is15 units of cocoa and 13.75 units of rice
Exchange of 4 tons of commodities
Benefits to both
With trade on the basis of comparative advantagegains for both countries
THE PRODUCTION POSSIBILITY FRONTIER
Limitations of Ricardian Comparative Cost theory
1. Restrictive ModelRicardo's Theory is based on only two countries and only two commodities. But international
trade is among many countries with many commodities.
2. Labour Theory of ValueValue of goods is expressed in terms of labour content. Labour Theory of value developed by
classical economists has too many limitations and thus is not applicable to the reality.
Value of goods and services in the real world is expressed in money i.e. the prices are the
values expressed in units of money.
3. Full employmentThe assumption of full employment helps the theory to explain trade on the basis of
comparative advantage. The reality is far from full employment. Cost of production, even in
terms of labour, may change as the countries, at different levels of employment move towards
full employment.
4. Ignore transport costAnother serious defect is that the transport costs are not consider in determining comparative
cost differences.
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5. Demand is ignoredThe Ricardian theory concentrates on the supply of goods. Each country specialises in the
production of the commodity based on its comparative advantage. The theory explains
international trade in terms of supply and takes demand for granted.
6. Mobility of factor of productionAs against the assumptions of perfect immobility between the countries, we witness
difficulties in the mobility of labour and capital within a country itself. At the same time their
mobility between nations was never totally absent.
7. No Free Trade
Ricardian theory assumes free trade i.e. no restriction on the movement of goods between the
countries. Though it is unrealistic to assume not to have any restriction. what the real world
witnesses is a lot tariff and non-tariff barriers on international trade. Poor countries find it
difficult to enjoy the comparative advantage in the production of labour intensive
commodities due to the protectionist policies followed by developed countries.
8. Complete specialisation
The comparative advantage theory comes to conclusion of complete specialisation. In the
Ricardian example, England is specialising fully on cloth and Portugal on wine. Such
complete specialisation is unrealistic even in two countries and two commodities model. It is
possible if two countries happens to be almost identical in size and demand. Again, a
complete specialisation in the production of less important commodity is not possible due toinsufficient demand for it.
9. Static TheoryThe modern economy is dynamic and the comparative cost theory is based on the
assumptions of static theory. It assumes fixed quantity of resources. It does not consider the
effect of growth.
10. Not applicable to developing countriesRicardian theory is not applicable to developing countries as these countries are nowhere near
to full employment. They are in the process of change in quality of their labour force, qualityof capital, technology, tapping of new resources etc. In other words developing countries
exhibit all the characteristics of dynamic economy.
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Heckscher-Ohlin Theory (also called as Factor Proportions
Theory)
1. In the early 1900s an international trade theory called factor proportions theory
emerged by two Swedish economists, Eli Heckscher and Bertil Ohlin.2. The Modern Theory of international trade has been advocated by Bertil Ohlin. Ohlin
has drawn his ideas from Heckscher's General Equilibrium Analysis. Hence it is also
known as Heckscher Ohlin (HO) Model / Theorem / Theory.
3. According to Bertil Ohlin, trade arises due to the differences in the relative prices of
different goods in different countries. The difference in commodity price is due to the
difference in factor prices (i.e. costs). Factor prices differ because endowments (i.e.
capital and labour) differ in countries. Hence, trade occurs because different countries
have different factor endowments.
4. The Heckscher Ohlin theorem states that countries which are rich in labour willexport labour intensive goods and countries which are rich in capital will export
capital intensive goods.
5. The Heckscher-Ohlin theory stresses that countries should produce and export goods
that require resources (factors) that are abundant and import goods that require
resources in short supply.
Assumptions of Heckscher Ohlin's H-O Theory
Heckscher-Ohlin's theory explains the modern approach to international trade on the basis of
following assumptions:-
1. There are two countries involved.
2. Each country has two factors (labour and capital).
3. Each country produce two commodities or goods (labour intensive and capital intensive).
4. There is perfect competition in both commodity and factor markets.
5. All production functions are homogeneous of the first degree i.e. production function is
subject to constant returns to scale.
6. Factors are freely mobile within a country but immobile between countries.
7. Two countries differ in factor supply.8. Each commodity differs in factor intensity.
9. The production function remains the same in different countries for the same commodity.
For e.g. If commodity A requires more capital in one country then same is the case in other
country.
10.There is full employment of resources in both countries and demand are identical in both
countries.
11.Trade is free i.e. there are no trade restrictions in the form of tariffs or non-tariff barriers.
12.There are no transportation costs.
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Given these assumption, Ohlin's thesis contends that a country export goods which use
relatively a greater proportion of its abundant and cheap factor. While same country import
goods whose production requires the intensive use of the nation's relatively scarce and
expensive factor.
Example:Imagine two countries that each produces both jeans and cell phones. Although both
countries use the same production technologies, one has a lot of capital but a limited number
of workers, while the other country has little capital but lots of workers.
The country that has a lot of capital but few workers can produce many cell phones but few
pairs of jeans because cell phones are capital intensive and jeans are labor intensive. The
country with many workers but little capital, on the other hand, can produce many pairs of
jeans but few cell phones.
According to the Heckscher-Ohlin theory, trade makes it possible for each country to
specialize. Each country exports the product the country is most suited to produce inexchange for products it is less suited to produce. The country that has a lot of capital
specializes in the production of cell phones, whereas the country that has more labor
specializes in the production of jeans.
In this case, neither country has specialized in producing more of
one of the two particular products - both countries produce aboutthe same number of jeans and cell phones.
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Country A - having more capital than labor - has specialized in
producing more cell phones. Country B - having more labor than
capital - has specialized in producing more jeans. In this case,trade may benefit both countries involved.
The Ohlin's theory concludes that:-
1. The basis of internal trade is the difference in commodity prices in the two countries.
2. Differences in the commodity prices are due to cost differences which are the results of
differences in factor endowments in two countries.
3. A capital rich country specialises in capital intensive goods & exports them. While a
Labour abundant country specialises in labour intensive goods & exports them.
Limitations of Heckscher Ohlin's H-O Theory
Heckscher Ohlin's Theory has been criticized on basis of following grounds :-
1. Unrealistic Assumptions: Besides the usual assumptions of two countries, two
commodities, no transport cost, etc. Ohlin's theory also assumes no qualitative difference
in factors of production, identical production function, constant return to scale, etc. All
these assumptions makes the theory unrealistic one.
2. Restrictive : Ohlin's theory is not free from constrains. His theory includes only two
commodities, two countries and two factors. Thus it is a restrictive one.
3. One-Sided Theory: According to Ohlin's theory, supply plays a significant role than
demand in determining factor prices. But if demand forces are more significant, a capital
abundant country will export labour intensive good as the price of capital will be high due
to high demand for capital.
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4. Static in Nature: Like Ricardian Theory the H-O Model is also static in nature. The
theory is based on a given state of economy and with a given production function and does
not accept any change.
5. Wijnholds's Criticism :According to Wijnholds, it is not the factor prices that determine
the costs and commodity prices but it is commodity prices that determine the factor prices.
6. Consumers' Demand ignored :Ohlin forgot an important fact that commodity prices are
also influenced by the consumers' demand.
7. Haberler's Criticism : According to Haberler, Ohlin's theory is based on partial
equilibrium. It fails to give a complete, comprehensive and general equilibrium analysis.
8. Leontief Paradox :American economist Dr. Wassily Leontief tested H-O theory under
U.S.A conditions. He found out that U.S.A exports labour intensive goods and imports
capital intensive goods, but U.S.A being a capital abundant country must export capital
intensive goods and import labour intensive goods than to produce them at home. This
situation is called Leontief Paradox which negates H-O Theory.
9. Other Factors Neglected : Factor endowment is not the sole factor influencing
commodity price and international trade. The H-O Theory neglects other factors like
technology, technique of production, natural factors, different qualities of labour, etc.,
which can also influence the international trade.
New Trade Theory (1970)-lieberman, chandler
New trade theory (NTT) is a collection of economic models in international trade which
focuses on the role of increasingreturns to scale and network effects, which were
developed in the late 1970s and early 1980s.
Paul Krugman was a leading academic in developing New Trade Theory. He was awarded a
Nobel Prize (2008) in economics for his contributions in modeling these ideas. for his
analysis of trade patterns and location of economic activity.
Explanation
New trade theory takes a different approach from the Ricardian and the Heckscher-Ohlin
models on why countries engage in international trade. Both Ricardo and Heckscher assumed
constant returns to scale where to them if all factors of production are doubled then output
will also double. But a firm or industry may have increasing returns to scale or economies ofscale in way that when all factors of production are doubled, output more than doubles which
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will necessitate a bigger market and thus forcing firms to engage in international trade where
there is a larger market. The New Trade Theorist noted that the bigger the size of a firm or
industry the more the efficiency of its operations in that the the cost per unit of output falls as
a firm or industry increases output. The increase in output must however be met with an
increase in the market size if it has to be sustainable.
1. New trade theory (NTT) suggests that a critical factor in determining international
patterns of trade are the very substantial economies of scale and network effects that
can occur in key industries
2. These economies of scale, and network effects, can be so significant that they
outweigh the more traditional theory ofcomparative advantage. In some industries,
two countries may have no discernible differences in opportunity cost at a particular
point in time. But, if one countries specializes in a particular industry then it may gain
economies of scale and other network benefits from its specialization
3. Another element of new trade theory is that firms who have the advantage of being an
early entrant can become a dominant firm in the market. This is because the first firms
gain substantial economies of scale meaning that new firms cant compete against the
incumbent firms. This means that in these global industries with very large economies
of scale, there is likely to be limited competition, with the market dominated by early
firms who entered, leading to a form ofmonopolistic competition.
4. This means that the most lucrative industries are often dominated in capital intensive
countries, who were the first to develop these industries. Therefore, being the first
firm to reach industrial maturity gives a very strong competitive advantage. (somemay say unfair advantage)
5. Two types of economies of scale were considered in explaining that countries engage
in international trade because of economics of scale. The first one is the internal
economies in which average costs of individual firms will fall as they produce more
output and become larger and the second one is the external economies of scale in
which average costs of the industry in a country will reduce as it produces more
output and grows larger.
6.New trade theory also becomes a factor in explaining the growth of globalization. Itmeans that poorer, developing economies may struggle to ever develop certain
industries because they lag too far behind the economies of scale enjoyed in the
developed world. This is not due to any intrinsic comparative advantage, but more the
economies of scale the developed firms already have.
http://www.economicshelp.org/dictionary/n/network-effects.htmlhttp://www.economicshelp.org/dictionary/c/comparative-advantage.htmlhttp://www.economicshelp.org/microessays/costs/economies-scale.htmlhttp://www.economicshelp.org/blog/311/markets/monopolistic-competition/http://www.economicshelp.org/blog/401/trade/what-caused-globalization/http://www.economicshelp.org/blog/401/trade/what-caused-globalization/http://www.economicshelp.org/blog/311/markets/monopolistic-competition/http://www.economicshelp.org/microessays/costs/economies-scale.htmlhttp://www.economicshelp.org/dictionary/c/comparative-advantage.htmlhttp://www.economicshelp.org/dictionary/n/network-effects.html -
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New Trade Theory and Government regulation
1. New trade theory suggests that governments might have a role to play in promoting
new industries and supporting the growth of key industries. Some point to the
Japanese car industry in the 1950s, which received substantial government support.
Other S.E. Asian economies also had some government protection and support.
2. A developing economy may need tariff protection and domestic subsidy to encourage
the creation of capital intensive industries. If the industry gets support for a few years,
it will be able to exploit economies of scale and then be competitive without
government support. This is similar to earlier arguments surroundinginfant
industries.
Problems of Government intervention
This idea of government supporting new industries is controversial. Many economists say
that it is likely to create other problems such as
The government is likely to have poor information about which industry to support and how
to go about it.
It creates a tendency for powerful vested business interests which rely on state support. This
state support may encourage inefficiency in the long-term.
Conclusion
1. New trade theory is not primarily about advocating government intervention in
industry, it is more a recognition that economies of scale are a key factor in
influencing the development of trade. It also suggests that free trade and laissez faire
government intervention may be much less desirable for developing economies who
find themselves unable to compete with established multi-nationals.
2. New trade theory also supposes an increasing scale of production, which is the model
that states that as input factors increase, output levels actually increase at a higher
level.
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Product Life-Cycle Theory
1. The product life-cycle theory is an economic theory that was developed in 1960s byRaymond Vernon in response to the failure of theHeckscher-Ohlin model to explain
the observed pattern ofinternational trade.
2. The theory suggests that early in a product's life-cycle all the parts and labor
associated with that product come from the area in which it was invented. After the
product becomes adopted and used in the world markets, production gradually moves
away from the point of origin.
3. The international product life cycle theory stresses that a company will begin to
export its product and later take on foreign direct investment as the product moves
through its life cycle. Eventually a country's export becomes its import. Although the
model is developed around the U.S, it can be generalised and applied to any of the
developed and innovative markets of the world.
4. In some situations, the product becomes an item that is imported by its original
country of invention.5. Example of this is the invention, growth and production of the personal computerwith
respect to the United States.
6. This was an applicable theory at that time since the U.S dominated the world trade.
Today, the U.S is no longer the only innovator of products in the world. Today
companies design new products and modify them much quicker than before.
Companies are forced to introduce the products in many different markets at the same
time to gain cost benefits before its sales declines. The theory does not explain trade
patterns of today.
7. The model applies to labor-saving and capital-using products that (at least at first)
cater to high-income groups.8. In the new product stage, the product is produced and consumed in the US; no export
trade occurs. In the maturing product stage, mass-production techniques are
developed and foreign demand (in developed countries) expands; the US now exports
the product to other developed countries. In the standardized product stage,
production moves to developing countries, which then export the product to
developed countries.
9. The model demonstrates dynamic comparative advantage. The country that has the
comparative advantage in the production of the product changes from the innovating
(developed) country to the developing countries.
10.Vernon pointed out that many manufactured foods, like automobiles, televisions,
instant cameras, photocopiers, personal computers, semi-conductor chips, etc. go
through a continuum or cycle that consists of introduction, growth, maturity, and
decline stages. The location of production will shift to serve markets according to the
stage of cycle a product is therein.
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There are five stages in a product's life cycle:
Introduction
Growths
Maturity
Saturation
Decline
The location of production depends on the stage of the cycle.
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Stage 1: Introduction
New products are introduced to meet local (i.e., national) needs, and new products are first
exported to similar countries, countries with similar needs, preferences, and incomes. If we
also presume similar evolutionary patterns for all countries, then products are introduced in
the most advanced nations. (E.g., the IBM PCs were produced in the US and spread quicklythroughout the industrialized countries.)
Stage 2: Growth
A copy product is produced elsewhere and introduced in the home country (and elsewhere) to
capture growth in the home market. This moves production to other countries, usually on the
basis of cost of production. (E.g., the clones of the early IBM PCs were not produced in the
US.) The Period till the Maturity Stage is known as the Saturation Period.
Stage 3: Maturity
The industry contracts and concentratesthe lowest cost producer wins here. (E.g., the many
clones of the PC are made almost entirely in lowest cost locations.)Stage 4: Saturation
This is a period of stability. The sales of the product reach the peak and there is no further
possibility to increase it. this stage is characterised by:
Saturation of sales (at the early part of this stage sales remain stable then it starts
falling).
It continues till substitutes enter into the market.
Marketer must try to develop new and alternative uses of product.
Stage 5: Decline
Poor countries constitute the only markets for the product. Therefore almost all decliningproducts are produced in developing countries. (E.g., PCs are a very poor example here,
mainly because there is weak demand for computers in developing countries. A better
example is textiles.)
Porters Diamond OR National Competitive Advantage Theory
(1990)
1.
According to Heckscher-Ohlin and Comparative Advantage Theory A Nation usesits resources very productively... BUT HOW?
2. The above Theories give only Partial explanation to the Question. So Michael
Porter of Harvard Business School developed a model / theory called Porters
Diamond Theory in 1990 in order to solve this puzzle.
3. Michael Porter's Theory of Competitive Advantage sought to examine the issue of
why some nation's business firms succeeded high and other fails in
international/global competition?
4. E.g. Japan Automobiles
Switzerland Precision Instrument
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The theory of competitive advantage probes into three major aspects of trade
phenomenon:
i. Why does a nation succeed international in a particular industry?
ii. What influence does a nation carry on competition in specific industries and their
Segments?
iii. Why do a nation's firms choose particular strategies of business?
Porter Theory is based on four Major Attributes / Factors that constitute a diamond
1. Factor Endowments2. Demand Conditions3. Firm Strategy, Structure And Rivalry4. Related and Supporting Industries
Additional Variables that Influences are:
5. Government & Chance
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Factor Endowments
BASIC FACTORS Natural resources, climate, location and demographics
ADVANCE FACTORS Communication Infrastructure, skilled labour, Research
facilities and so on.
Basic factors can provide only an initial advantage
They must be supported by advanced factors to maintain success
E.g. 1.Choice of tile to meet customer Demand
Choice of Italy as production location
Wood is less available and expensive than tiles
Most of the Advanced factors were available within Italy
E.g. 2. Japan a country which lacks arable land and mineral deposits.
Large pool of engineers - very vital for a manufacturing industry.
Japan has high priced land and so its factory space is at a premium.
E.g. 3.Japan's success may largely be attributed to its advanced factors creation rather than
basic factors arability. A nation can overcome its deficiency or comparative disadvantage of
basic factors endowment by focusing on creation of advanced factors to improve its
competitive advantage.
Demand Conditions:
Home country Demand plays an important role
Enables better understand the needs and desires of the customers
It shapes the attributes of domestic ally made products and creates pressure for
innovation and quality
E.g. 1. Italian ceramic Industry after the world war II There was a postwar housing BOOM !!
Consumers wanted cool floors because of Hot climatic conditions
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E.g. 2.Japans knowledgeable buyers of cameras made that industry to innovate and grow
tremendously
E.g. 3. Local demand for cellular phones in Scandinavia made nokia and Ericson to invest inthat in other developing nations.
E.g. 4. The French wine industry. The French are sophisticated wine consumers. These
consumers force and help French wineries to produce high quality wines.
Firm Strategy, Structure And Rivalry:
Long term corporate vision (Strategy) is a determinant of success
Ability of the companies to develop and sustain a competitive advantage requires the
4 Th attribute.
Presence of domestic rivalry improves a companys competitiveness
E.g. 1. Low entry barriers to market in the tile industry Rivalry became very intense
Breakthroughs in both product and process technologies
E.g. 2. Germany tends to have hierarchical management structures composed of managers
with strong technical backgrounds and Italy has smaller, family-run firms.
E.g. 3. Japan has high priced land and so its factory space is at a premium This lead to just-
in-time inventory techniques (Japanese firms cant have a lot of stock taking up space, so to
cope with the potential of not have goods around when they need it They innovated
traditional inventory techniques).
Related and Supporting Industries:
Benefits of investment in advanced factors by Suppliers and related industries can
spill over.
Creates clusters of supporting industries, thereby achieving a strong competitive
position internationally.
E.g. 1. The enamel production unit was available.
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The glazes production was also favorable.
These two were the main composition of producing tiles.
This reduces the Transportation cost.
E.g. 2.Switzerlands success in pharmaceutical industry is closely related to its international
success in technical dye industry.
E.g. 3. Swedish strength in fabricated steel industry is the reason for development in the
Sweden's specialty steel industry.
Government & Chance
Chance Events such as major innovations, can reshape industry structure.
GovernmentPoliciesCan detract from or improve national advantage.
Regulation can alter home demand conditions.
Government investment in education can change factor endowment.
E.g. 1991US GovtTariff on Japanese imports of LCD screens
APPLE and IBMProtested strongly
JapanThe low cost LCD manufacturer
Increase the LCD screens as well as Laptops in the global market Reduce the
Market Share.