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Essay text:
Conclusion
1. Meaning and Intro
Porter wanted to find out why US was losing its competitiveness, and why
- Japan was strong in automobiles
- US strong in Chemicals
- Switzerland strong in pharmaceutical
- Germany strong in Machines
- Etc
The classical economic theorists were unable to explain.
Porter put forth his theory on Competitive Advantage of Nations, according to him; it is the diamond factors that determine the nations’ competitive advantage.
2. Porter’s Diamond Factors
Firm Strategy, Structure and rivalry
Free Market -> increased competition.
Eg. In Japan, highly aggressive competition for most industries (cars, consumer elec, cameras, semi-conductors)
Role of Govt
a) deregulation
b) privatization
c) Diminish role of Govt-Linked-Coys (GLC) eg...
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