Do Porter’s ideas on national competitive advantage: Which specific nations have achieved economic success?

Type :

Term papers

Pages :

5 pages

Format :

.doc

Published date :

05/11/2009

Category :

Economics & finance

Sub category :

Economics

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Summary :

Introduction
Competitiveness
National competitiveness
Factor conditions
Home demand conditions
Supporting industries
Firm strategy and rivalry
Criticism of Porter's ideas
Conclusion
Bibliography

Abstract

national competitiveness is one of the most important economic concepts as it outlines as to how a nation can grow and succeed by utilizing its competitiveness. Competitiveness, therefore refers to the concept of how a nation produces its goods and services- the relative efficiency of producing them defines the overall competitiveness of a nation. It is also termed as a nation's ability to create sustainable value which results into overall improvements in the standards of living of people of the nation. As such, the competitiveness itself is a much bigger concept which embodies many socio-political as well as socio-economic factors into it.
With the increase in globalization trends, economy is largely being viewed as a collection of states, individuals and firm and as such the collective competitiveness of all the entities of a nation give rise to its competitiveness and increased ability to compete in an international market. Michael porter's theories on international competitiveness of the countries are largely based on the strategic perspective and lack the solid economic foundations. As such from the perspective of economics- in the words of Paul Krugman that "Competitiveness is meaningless word when applied to national economies". However, despite such criticism, the theories of national competitiveness, especially of Michael porter's are considered as one of the cornerstones of research on the subject. porter's ideas attempt to define the means through which the sustainable competitive advantage can be achieved by an economy.
This research paper will focus on the ideas of Michael porter on how to achieve national competitiveness and whether his ideas have actually provided the means to achieve the competitive advantage by which specific nations have achieved success.