ECON 261 Lecture Notes - Lecture 17: Fits, International Business, Absolute Advantage
Document Summary
China has pursued aggressive investments in the electronic industry in the last two decades. The potential of china can be analyzed in terms of the capability that china joins forces in pursuing a stronger position in the global market. Nations , the diamond of four major categories was featured by michael porter (hill&hult,2017). This theory can be used to analyze the combined potential of china in the electronic industry. Factor conditions are the first category, which includes labor, land, natural resources, and capital. Michael porter emphasis was specialized on labor and infrastructure. China universities have focused on engineering particularly in electronic industry. Several industrial parks were built by china in order to develop the electronic industry. This project is for 500,000 people with housing, offices, and schools. The second category is diamond conditions in the home market. These customers may play a key role in making companies more competitive. The chinese electronic manufacturers are very competitive with each other.
