StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Porter's model of national competitive - Essay Example

Cite this document
Summary
Instructor Date Porter’s Model of National Competitiveness Countries participate in the global economy, and have to compete in the tough world market place to maintain their living standards. High productivity and product quality are important factors in maintaining a nation’s competitiveness…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.4% of users find it useful
Porters model of national competitive
Read Text Preview

Extract of sample "Porter's model of national competitive"

Download file to see previous pages

Governments team up with business institutions to device strategies that will guarantee a competitive edge against rivalry countries. Porter’s diamond framework has linked firms, industries, and nations together to explain international competitiveness of countries. However, the model has failed to capture support from the economic school of thought and relies on management theories. This can be explained in terms of international competitiveness at the firm level. Changing patterns of globalization of the world economy, world trade, and dissemination of technology have changed international competitiveness at the firm level.

Emphasis on competition among firms in world markets has renewed interest in international competitiveness of countries. This paper focuses on explaining whether or not countries compete internationally as depicted in Porter’s model. This paper explains theories underlying the economic and management schools of thought. The first section gives an overview of trade theory that gives reasons for differences between economists and management specialists on international competitiveness of countries.

These theories also provide the basis for Porter’s diamond theory. The second section examines porter’s framework under the context of economic trade theories. Porter utilizes logical reasoning instead of mathematical economic models to describe different trade theories. This makes it possible for policy-makers to understand the Diamond Framework that can be used to enhance international competitiveness of countries. The last section draws generalizations about the validity of the model. Adam Smith’s theory in 1876 of absolute advantage was the first attempt to explain reasons behind free international trade between countries (Smit, 108).

According to Smith, a country can enhance its prosperity by specializing in goods and services in which it has absolute cost advantage over other country (Smit, 108). A country can also improve its prosperity by importing goods and services in which it has absolute cost advantage. Smith’s theory explains why countries can increase their welfare through imports and simultaneously selling goods and services in international markets. Adam smith viewed trade as a positive sum game when developing this theory.

This theory contradicts the 16th century mercantilists’ viewpoint of trade as a zero sum game where countries have to export

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Porter's model of national competitive Essay Example | Topics and Well Written Essays - 2250 words”, n.d.)
Porter's model of national competitive Essay Example | Topics and Well Written Essays - 2250 words. Retrieved from https://studentshare.org/management/1462554-porteryies-model-of-national-competitive
(Porter'S Model of National Competitive Essay Example | Topics and Well Written Essays - 2250 Words)
Porter'S Model of National Competitive Essay Example | Topics and Well Written Essays - 2250 Words. https://studentshare.org/management/1462554-porteryies-model-of-national-competitive.
“Porter'S Model of National Competitive Essay Example | Topics and Well Written Essays - 2250 Words”, n.d. https://studentshare.org/management/1462554-porteryies-model-of-national-competitive.
  • Cited: 0 times

CHECK THESE SAMPLES OF Porter's model of national competitive

Porter's Model of National Competitive Advantage

Porter made use of a diamond shaped illustration to be the basis of his framework to show the determinants of national advantage.... Porter's Diamond of national Advantage Corporate strategies are ever increasing and thus have to be observed from a global context.... Michael porter's model that allows for the analyzing of why some countries are more aggressive than others are, and the reason why some industries within countries are more aggressive than the way others are....
10 Pages (2500 words) Essay

Porter's Model of National Competitive Advantage in Explaining Workings and Achievements of Nation

The underlying purpose of this discussion is to provide the reader with a more informed understanding of how convincing is Porter's model of national competitive advantage in explaining the workings and achievements of a major nation.... Porter's diamond theory was one of the theories that describe how countries may use their resources in order to gain an advantage in the competitive global market.... Countries do their best in order to ensure that they remain competitive in the international market....
10 Pages (2500 words) Essay

Porters Model on National Competitiveness

National competitiveness Name Institution affiliation Tutor Date National competitiveness porter's model on national competitiveness is convincing enough to the fact he presented in his arguments.... hellip; The countries he mentioned as the global leaders in competitive advantage have been proven to be leading in exports across the entire global.... In using porter's way of analysis such nations lacks the international standard of competitive advantage....
8 Pages (2000 words) Essay

Analysis of Nationwide Competitiveness

Porter and national competitive Advantage Institution: Name: Course: Level: Date: Introduction Porter's replica of national gain is convincing in comprehending the workings and attainments of key national business schemes.... Porter used a diamond shaped drawing as the basis of framework to exemplify the determinants of national advantage.... he Japanese facsimile industry exemplifies the diamond of national gain.... hellip; Koen (2005) argues that porter's model brought in a generic value chain mould that comprises of a series of activities found to be similar to a wide variety of firms....
7 Pages (1750 words) Essay

Analysis of Porter's Five Forces Model

The author of this paper examines Porter's emphasis on the four determinants (the Diamond) of the national competitive advantage such as factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry.... nbsp; Porter's theoretical postulates on national competitive advantage have been critically examined by many authors.... Whereas many economists have doubted the efficacy of Porter's conceptual framework of the "diamond of national competitiveness" basically owing to its many shortcomings in structural consistency, others agree that its theoretical underpinnings have stronger relevance to modern international trade context....
9 Pages (2250 words) Term Paper

Critical Factors in Porters Model of National Competitive Advantage

porter's model of national competitiveness is regarded as an appropriate framework for evaluating firm's competitive position.... The companies are now focused towards… Sustainable competitive position is basically observed through sector specific and firm specific strategies.... competitive strategies designed by firms outline their competitive position in the market place.... It is stated as a model that helps to determine competitive position of a company rather than a country or nation....
8 Pages (2000 words) Essay

Porter Model of National Competitive Advantage

hellip; The conclusion from this study states that Porters' model of national competitive advantage provides a degree of variation of national business systems and a comparative economic performance across different nations and industries.... This paper analyzes Porter's theory of competitive advantage of nations and its relevance to business systems in major economies.... It also reviews several critiques of Porter's theory of competitive advantage of nations in the determination of the effectiveness of the diamond model....
12 Pages (3000 words) Essay

Porters Model of National Competitive Advantage

The idea of this research emerged from the author's interest and fascination in how convincing is Porter's model of national competitive advantage in explaining the characteristics and performance of the business systems of major economies.... In his research, Oz applied Porter's Diamond Model to monitor the competitive advantage of five industries in Turkey.... On the other hand, the non-competitive automobile companies in the Turkish market remained non-performers in the international markets....
11 Pages (2750 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us