MGTA03 / 02
- The United States dominates the North American business region. It is the single largest
marketplace and enjoys the most stable economy in the world. Canada also plays a large
UROH&DQDGD¶VODUJHVW trading partner is the U.S.
- Mexico has also become a major manufacturing centre especially along the southern U.S.
border where there is cheap labour and low transportation costs. The auto industry is also
very active in Mexico where exports of automobiles increased $16.4 billion between the
years 1993 to 2001. Companies include: Nissan, General Motors, Volkswagen, Ford ...
- Europe has often been regarded as two regions ±Western Europe and Eastern Europe
- Western Europe (France, Italy, United Kingdom, and Germany) has long been a matured
but fragmented marketplace.
- After the transformation of the European Union (EU) in 1992, it has become a unified
workplace [Shell, Michelin, Siemens ... have their headquarters in Western Europe]
- Eastern Europe (Poland, Russia, Bulgaria ...) was once primarily communist but has gain
importance both as a marketplace and as a producer. [Suzuki, General Motors, Ford and
Volkswagen have built factories in Hungary]
Asia ± Pacific
- Asia ± Pacific consists of Japan, China, Thailand, Malaysia, Singapore etc...
- Fuelled by strong entries in the automobile, electronics, and banking industries, the
economies grew rapidly during the 1970s and 1980s but due to a currency crisis in the
late 1990s, this slowed growth in virtually every country of the region
- Aside from the currency issue, countries such as Japan (Toshiba, Toyota) dominates and
in South Korea (Samsung and Hyundai) dominates in the market place
- ,QGLFDWRUVVXJJHVWWKDWWKH&KLQHVHHFRQRP\LVQRZWKHZRUOG¶VWKLUGODUJHVt, behind the
United States and Japan
- In North America and Western Europe, technology promises to play an important role in
this region. However in Asia, due to poorly developed electronic infrastructure and
slower adoption of computers and information technology, the emergence of technology
Forms of Competitive Advantage
- There are high levels of importing and exporting because countries tend to export
products or services that they can produce better or less expensively than other countries
and import when producing the good is ineffective
- Traditionally, economists focussed on absolute and comparative advantage to explain
international trade. A new perspective, national competitive advantage has also arise
- An absolute advantage exists when a country can produce something more cheaply
and/or of better quality than any other country
produce just as good of a quality as another nation with just as low prices
- A country has a comparative advantage in goods that it can produce more efficiently or
better than other goods
- E.g. if a business in a nation produces computers more efficiently than automobiles, that
National Competitive Advantage