MGT 409 Lecture Notes - Lecture 7: Beck, World Economy, Offshoring
Document Summary
Opportunities when firms diversify abroad: o o o. Trade across nations will exceed trade within nations. Transfer of money from rich to poor countries. Threats when firms diversify abroad: o o. Failure to manage broader economic factors in some countries. Factors affecting a nation"s competitiveness (four things drive how competitive a firm is) Factor conditions: nation"s position in factors of production. Example: japan does jit inventory because they don"t have enough warehouse space. Demand conditions: nature of home-market demand, demand customers place on the market, nature of international demand. Presence or absence in the nation of internationally competitive. Conditions in the nation governing how companies are. Managed: nature of domestic rivalry, domestic rivalry is the strongest indicator of global competitive success. To achieve competitive advantage, factors of production must be: o o. Firm specific: accessible the pool of resources at a firm"s or country"s disposal is less important than the speed and efficiency with which the resources are deployed.
