How Convincing Is Porters Model of National Competitive Advantage in Essay - 5

How Convincing Is Porters Model of National combative Advantage in Explaining the Characteristics and Performance of the Business Systems of Major Economies - Essay ExampleThe paper tells that international scrap of countries is an ever-growing concern for firms, governments as well as academic scholars. International fight is one of the most utilize and misunderstood terms in the press and academic literature of the modern world. According to Daniels, there is no consensus on how to measure, explain and predict international competitiveness of countries. The true meaning and understanding of the international competitiveness of countries have been the subject of much debate. Porter popularized the implicit assumption underlying the management theories that a firms competitiveness can be extended to a lands competitiveness using his diamond model and the world competitiveness reports. There are two schools of thought the economical school and management school. The economic s chool ignores the notion of country competitiveness. However, the management school supports the concept of country competitiveness. To properly explain the differing views on international competitiveness by economists, a little background on the differing slyness theories is required. The review of the trade theories will provide a platform for the analysis of Porters Diamond framework. Adams Smith possibleness of absolute advantage was the first theory that attempted to explain why countries engage freely in international trade. According to this theory a state can enhance its prosperity if it limits itself into producing goods and services that the country has a higher absolute cost advantage over other countries. The country should also entailment those goods and services in which it has an absolute cost disadvantage.