INTB 1209 Lecture Notes - Lecture 15: Power Car, Factor Endowment, World Trade Organization
18 Feb 2020
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Document Summary
Activities for chapter 6: the car manufacturing industry in germany has a regional advantage because it satisfies the four key factors in porter"s diamond. Germany is geographically located in the center of europe, this poses a great advantage when it comes to importing and exporting activities whether these be for factors of production, skilled labor or knowledge transfer. From a factor endowments" perspective, for car manufacturing, germany is rich in many of the raw materials employed in production: natural gas, coal, iron ore, nickel, and copper. Germany is also the world"s second-largest steel importer and, because of its prime location and economies of scale, it is able to gain international competitive advantage. Furthermore, german infrastructure is among the world"s most developed, thus easing communications and transport. The availability of skilled labor is amongst the highest in the world thanks to educational paths focused on professional training which achieve specialization.
