Hw Answers Ch 5
This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA
Overview
Download & View Hw Answers Ch 5 as PDF for free.
More details
- Words: 323
- Pages: 1
EXAMPLES OF ANSWERS HW – CH.5
Quick Study 5 (p. 163) 1.
Q: What is the new trade theory? Explain what is meant by the term first-mover advantage. A: The new trade theory argues that: (1) there are gains to be had from specialization and increasing economies of scale; (2) those companies first to market can create barriers to entry; and (3) government may have a role to play in assisting its home-based companies. A first-mover advantage is the economic and strategic advantage gained by being the first company to enter an industry.
2.
Q: Describe the national competitive advantage theory. What is meant by an “advanced” factor? A: National competitive advantage theory states that a nation’s competitiveness in an industry depends on the capacity of the industry to innovate and upgrade. An “advanced” factor is indicative of factors such as skill levels of workers and the quality of technology in a nation.
3.
Q: What are the four elements and two influential factors of the Porter diamond? A: The so-called Porter Diamond consists of four elements that form the basis of competitiveness, plus the roles of government and chance. Factor conditions include a nation’s basic factors (e.g., land, labor, and natural resources) and advanced factors (e.g., skills of the workforce, technological infrastructure). Today, advanced factors are increasingly important to competitiveness. Demand conditions refer to the sophistication of buyers in a market—finicky buyers help a nation to be more competitive. Related and supporting industries that spring up around a competitive industry form geographic clusters of related economic activity that reinforce productivity and competitiveness. Firm strategy, structure, and rivalry also influence competitiveness. Managers committed to producing quality products and an industry structure that intensifies firm rivalry will help improve competitiveness. Government and chance play roles in fostering the competitiveness of industries. Government policies toward industry and export and import regulations can hurt or help competitiveness. Chance events also can influence national competitiveness.
300 words
Quick Study 5 (p. 163) 1.
Q: What is the new trade theory? Explain what is meant by the term first-mover advantage. A: The new trade theory argues that: (1) there are gains to be had from specialization and increasing economies of scale; (2) those companies first to market can create barriers to entry; and (3) government may have a role to play in assisting its home-based companies. A first-mover advantage is the economic and strategic advantage gained by being the first company to enter an industry.
2.
Q: Describe the national competitive advantage theory. What is meant by an “advanced” factor? A: National competitive advantage theory states that a nation’s competitiveness in an industry depends on the capacity of the industry to innovate and upgrade. An “advanced” factor is indicative of factors such as skill levels of workers and the quality of technology in a nation.
3.
Q: What are the four elements and two influential factors of the Porter diamond? A: The so-called Porter Diamond consists of four elements that form the basis of competitiveness, plus the roles of government and chance. Factor conditions include a nation’s basic factors (e.g., land, labor, and natural resources) and advanced factors (e.g., skills of the workforce, technological infrastructure). Today, advanced factors are increasingly important to competitiveness. Demand conditions refer to the sophistication of buyers in a market—finicky buyers help a nation to be more competitive. Related and supporting industries that spring up around a competitive industry form geographic clusters of related economic activity that reinforce productivity and competitiveness. Firm strategy, structure, and rivalry also influence competitiveness. Managers committed to producing quality products and an industry structure that intensifies firm rivalry will help improve competitiveness. Government and chance play roles in fostering the competitiveness of industries. Government policies toward industry and export and import regulations can hurt or help competitiveness. Chance events also can influence national competitiveness.
300 words
Related Documents
Hw Answers Ch 5
June 2020 8
Hw Answers Ch 3 4
June 2020 3
Hw Answers Ch 1 2
June 2020 4
Ch 12-14 Hw
November 2019 11
Ch. 3 Traditions Hw
July 2020 6