Professional Documents
Culture Documents
Strategic Rivalry
Competitive Advantage
(Porter, 1990)
Mercantilism/Neomercantilism
Absolute Advantage
Adam Smith: The Wealth of Nations, 1776
Mercantilism weakens country in long run; enriches only a few
A country
Cocoa
G:Ghana
K:S.Korea
G'
K'
Rice
Comparative Advantage
Cocoa
K'
G:Ghana
K:S.Korea
G'
Rice
no transportation costs
full employment
Factor endowments
Demand conditions
Porters Diamond
mover implications
Location
Foreign
Implications
Investment Decisions
Government
Policy implications