Base your report on the “Diamond Model” framework of Porter, and the analysis of international business risks as presented in the textbook.
* Factor conditions are human resources, physical resources, knowledge resources, capital resources and infrastructure.[2]Specialized resources are often specific for an industry and important for its competitiveness.[2] Specific resources can be created to compensate for factor disadvantages. * Demand conditions in the home market can help companies create a competitive advantage, when sophisticated home market buyers pressure firms to innovate faster and to create more advanced products than those of competitors.[2] * Related and supporting industries can produce inputs which are important for innovation and internationalization.[2] These industries provide cost-effective inputs, but they also participate in the upgrading process, thus stimulating other companies in the chain to innovate.[2] * Firm strategy, structure and rivalry constitute the fourth determinant of competitiveness.[2] The way in which companies are created, set goals and are managed is important for success.[2] But the presence of intense rivalry in the home base is also important; it creates pressure to innovate in order to upgrade competitiveness.[2] * Government can influence each of the above four determinants of competitiveness.[2] Clearly government can influence the supply conditions of key production factors, demand conditions in the home market, and competition between firms.[2] Government interventions can occur at local, regional, national or supranational level.[2] * Chance events are occurrences that are outside of control of a firm.[2] They are important because they create discontinuities in which some gain competitive positions and some lose.[2]
DIAMOND MODEL : http://www.vectorstudy.com/management_theories/diamond_model.htm
Conclusion
Legal Systems
Economical Systems