国际商务Chap006.ppt

6-* Firm Strategy, Structure and Rivalry Different nations are characterized by different management styles. German and Japanese firms V.S American firms Management ‘ideology’ and structure of the firm can either help or hurt Presence of domestic rivalry improves a company’s competitiveness 6-* Porter’s Theory-predictions Porter’s theory should predict the pattern of international trade that we observe in the real world Countries should be exporting products from those industries where all four components of the diamond are favorable, while importing in those areas where the components are not favorable * * * LO1: Understand why nations trade with each other. The Opening Case: The Rise of India’s Drug Industry illustrates the benefits of free trade and globalization. After agreeing to new regulations on patents, India has seen its industry grow significantly providing new jobs and wealth. Western companies have benefited from lower cost manufacturing opportunities, although U.S. workers have seen employment in the industry drop. * * Country Focus: Is China a Neo-Mercantilist Nation analyzes claims that China is a neo-mercantilist nation. Exports are largely responsible for China’s recent rapid economic growth. The country, capitalizing on its cheap labor force, has been focused on converting raw materials into products that are exported to developing countries like the United States. In 2008, China’s trade surplus was a record $260 billion, and its holdings of foreign exchange reserves were$1.95 trillion. * * LO2: Summarize the different theories explaining trade flows between nations. Basic factors: Natural resources Climate Geographic location Demographics While basic factors can provide an initial advantage they must be supported by advanced factors to maintain success. Advanced factors: The result of investment by people, companies, and government are more likely to lead to competitive advantage. If a country has no basic factors, it must