GEB 3375 Chapter Notes - Chapter 6A: Factor Endowment, Neomercantilism, Bertil Ohlin
Document Summary
Comparative advantage- describes superior features of a country that provide unique benefits in global competition, typically derived from either natural endowments or deliberate national policies (also known as country specific advantage) Inherited resources (such as labor, climate, arable land & petroleum reserves) Acquired over time such as entrepreneurial orientation, availability of venture capital and innovative capacity. Organizational assets and competencies that are difficult for competitors to imitate and thus help firms enter and succeed in foreign markets. Take various forms such as specific knowledge, capabilities, innovativeness, superior strategies, closer relationships with suppliers. (also known as firm specific advantage) In recent years business executives and scholars have use competitive adv to refer to the advantages possessed by nations and by individual firms in international trade and investment. Trade enables countries to use their national resources more efficiently through specialization. Allows industries and workers to be more productive.
