ADMS 4900 Chapter Notes - Chapter 7: Factor Endowment, Arbitrage, Offshoring
Document Summary
Chapter 7 international strategy: creating value in global markets. The diamond of national advantage attributes that determine the playing field that each nation establishes and operates for its industries. ~ factor endowment nation"s position in factors of production necessary to compete in. ~ demand conditions nature of home-market demand for the industry"s product or given industry service. ~ related and supporting industries presence/absence in the nation of supplier industries and other related industries that are internationally competitive. ~ firm strategy, structure, and rivalry conditions in the nation governing how companies are created, organized and managed as well as the nature of domestic rivalry. Concluding comments on factors affecting a nation"s competitiveness. Competitive advantage for global firm comes from continuing improvement, innovation and change. Government acts as either facilitators or inhibitors. Expanding global presence automatically increases scale of operations, providing larger revenues and asset base.