Economics 1021A/B Study Guide - Quiz Guide: Our Common Future, Discourse Analysis, Competitive Advantage

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: bruce hammond

Document Summary

Porter, m. , & van der linde, c. (1995). Toward a new conception of the environment- competitiveness relationship. The environment-competitiveness debate has been framed incorrectly. New paradigm of competitiveness is based on a dynamic model, which in turn is based on innovation. Internationally competitive companies are not those with the cheapest inputs or the largest scale, but those with the capacity to improve and innovate continually. Competitive advantage rests on the capacity for innovation and improvement that shift the constraints. Properly designed environmental standards can trigger innovation that can offset the costs of complying with them. Currently in a transition phase, companies don"t know how to deal creatively with environmental issues yet. Innovation to comply with env. regulation often improves product performance or quality (product offset) Env. regulations may also reduce product costs by showing how to eliminate costly materials, reduce unnecessary packing or simplifying designs (product offset)