Diamond Role Summary: Porter's Diamond Of National Advantage
Introduction
Country prosperity
National prosperity does not grow out of a country’s natural endowments, its labor pool, its interest rates or its currency’s value as classical economics insists, this question may led one to think that is created not inherited and would in fact totally agree with the statement. Achieving such prosperity in particular countries requires the use of trade to extract the political and economical benefits from its partners in order to gain them as allies, enhance state power and create political dependency.
Trade is considered a political event involving firms within countries to exchange goods and services across international borders affecting the society as well as the overall economy. Investment is another …show more content…
If such countries follow the same lead as China or by reducing their deficit in the budget or by not selling Bonds to foreign countries, would lead to reducing the exchange rate and alternatively lose some jobs to China or other developing countries with cheap labour as well. This in turn can lead to the reduction consumption because many items would increase in price. Devaluation is linked to the overall country trading, currency and exchange rate, open market, reserve requirement and many more other …show more content…
The individual points on the Diamond as well as the whole diamond affect four “ingredients” which are essential in the achievement of the overall nation’s competitiveness. Namely resources and skills; Data used by the firm to decide on which resources and skills to pursue; Individual’s goals within the firm; Firm’s incentive/pressure to invest, develop, create and innovate.
The Diamond help companies and nations to understand all the following determinants.
Factor Conditions relates to specialized staff, infrastructure, technologies, land that a country processes. The accumulation of factors at a certain point of time in less crucial than the degree of its development, upgrade and organization. However, the lack of labor, limited raw material push firms to innovate to achieve competitive advantage of the
Country prosperity
National prosperity does not grow out of a country’s natural endowments, its labor pool, its interest rates or its currency’s value as classical economics insists, this question may led one to think that is created not inherited and would in fact totally agree with the statement. Achieving such prosperity in particular countries requires the use of trade to extract the political and economical benefits from its partners in order to gain them as allies, enhance state power and create political dependency.
Trade is considered a political event involving firms within countries to exchange goods and services across international borders affecting the society as well as the overall economy. Investment is another …show more content…
If such countries follow the same lead as China or by reducing their deficit in the budget or by not selling Bonds to foreign countries, would lead to reducing the exchange rate and alternatively lose some jobs to China or other developing countries with cheap labour as well. This in turn can lead to the reduction consumption because many items would increase in price. Devaluation is linked to the overall country trading, currency and exchange rate, open market, reserve requirement and many more other …show more content…
The individual points on the Diamond as well as the whole diamond affect four “ingredients” which are essential in the achievement of the overall nation’s competitiveness. Namely resources and skills; Data used by the firm to decide on which resources and skills to pursue; Individual’s goals within the firm; Firm’s incentive/pressure to invest, develop, create and innovate.
The Diamond help companies and nations to understand all the following determinants.
Factor Conditions relates to specialized staff, infrastructure, technologies, land that a country processes. The accumulation of factors at a certain point of time in less crucial than the degree of its development, upgrade and organization. However, the lack of labor, limited raw material push firms to innovate to achieve competitive advantage of the