cut costs by eliminating duplicated effort and allows a company to take advantage of economies of scale when purchasing supplies. However‚ some advantages may be lost when a company decided to standardize its operations. Disadvantages Loss of Uniqueness If a company builds up a customer base that values its unique niche products‚ or if the company serves a specialized market‚ standardizing its processes may mean it loses some of its former customers. For example‚ if a restaurant builds its reputation
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Some Consequences of Unemployment We often hear about the main causes for unemployment. When consumers buy fewer goods‚ shops and factories may have to reduce the number of workers or close entirely. As the government collects less sales tax‚ civil employees may likewise lose their jobs. Changes in technology may also bring about a rise in unemployment as workers are no longer needed in certain sectors. Natural disasters such as tornadoes and floods may cause so much damage that normal employment
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Competitive Advantage: Question 1/2: A competitive advantage is a position that a firm occupies in its competitive landscape. Cost advantage Cost advantage A firm possesses a sustainable competitive advantage when it has value-creating processes and positions that cannot be duplicated or imitated by others‚ that lead to the production of above normal rents‚ in that it provides a long-term advantage that is not easily replicated. Sources of competitive advantage: Competitive advantage Competitive
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Communication Technology Communication is the imparting or exchanging of information by speaking‚ writing‚ or using some other medium. The communications revolution is based on three technologies Telephone Televisions Computer. The history and development of communication technology is one of the ever increasing speed and efficiency of communication over ever greater distance and ever decreasing costs. Telephone: Telephone / Mobile Phone is a system for transmitting voices over a distance
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My comparative advantage in the labor market is as a Senior Administrative Assistant. The understanding of the duties of a Senior Administrative Assistant is often misunderstood to be a non-specialized occupation that doesn’t require any expertise. Presently‚ the administrative assistant job market is changing drastically due to employment trends which require a broadening and expanding of the functions and obligations of an administrative assistant. “Because of new technology‚ the administrative
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Comparative Advantage First let us define the comparative advantage which is the ability of a firm or individual to produce goods and/or services at a lower opportunity cost than other firms or individuals. A comparative advantage gives a company the ability to sell goods and services at a lower price than its competitors and realize stronger sales margins. If one country is better at producing one good and another country is better at producing a different good (assuming both countries demand
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Advantages of Boeing’s outsourcing strategy * By outsourcing‚ Boeing is able to reduce costs and generate sales. Outsourcing to countries such as India can give the company access to cost-effective services and get access to specialized skills and services. * Boeings’ strategy allowed entry into two of the largest and fastest growing airplane markets (china and India). * It gained the ability to distribute some of the risks associated with large investment required to build an airplane
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1. What does the article say about the importance of international economics‚ the principle of comparative advantage‚ and modern trade theory? Explain. The article shows us how India diversified its economy by creating new avenues of trade when its manufacturing market took a dive nose. India saw there was a need in the international market for outsourcing‚ call centers and engineering talents and it took advantage of it by harnessing its labor abundance to provide them with a competitive advantage
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COMPETITIVE ADVANTAGE 1) The petrochemical industry produces goods that are largely undifferentiated. To be profitable‚ PCG need to be the lowest cost producer. Raw materials form the majority of PCG cost of revenue. PCG competitive advantage is‚ it has access to very low cost natural gas compared to its competitor‚ which in turn‚ means a higher gross profit margin. 2) PCG is backed by PETRONAS group‚ which also owns other 4 PLC units: i) MISC Bhd ii) Petronas Dagangan Bhd iii) Petronas
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Growing Economies‚ Rising Problems Global groups struggle with fast rise of poor nations‚ putting conflict on the horizon Uri Dadush‚ William Shaw YaleGlobal‚ 23 June 2011 WASHINGTON: The rise of developing countries is transforming the global economy. Whereas for the bulk of the world’s population economic stagnation has been the rule over millennia‚ today’s economic growth is unprecedented. More countries – and people – are achieving rapid income growth than ever before‚ and developing countries
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