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However, because it is fundamentally a home-based model of international competitiveness, the diamond theory is criticized by many international business scholars. Dunning , and Rugman ¬, ¬¬ point out that the influence on competitiveness of two-way foreign direct investment (FDI) and foreign government influence and interference on trade and investment have been neglected. Rugman and Collinson have also evaluated the model and identified eight areas for comment. This essay will look at Rugman and Collinson's criticisms of Porter's model, focussing on three major areas: the role of FDI, foreign government influence and Multi National Enterprises (MNEs), before looking at developments to Porters diamond with country specific examples...
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Common topics in this essay:
- Achieving Competitive Advantage
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- Are There New Sources Of Competitive Advantage In Markets, Which Are Being Exploited By Forward Looking Organisations In The 21st Century? Use Examples To Illustrate Your Answer.
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