In the intensely competitive global automotive industry, what factors provide comparative advantage to nations? Give some examples of natural advantages and acquired advantages that nations possess in this industry. Comparative Advantage: are the advantages from the own country. Some country’s can produce a specific product, which no other country can do. Natural Advantages: the natural advanradges of country. Like how does the weather influences the product. If it rains a lot the bean of coffee are ruined, so there are less of them, so the price will be high. Acquired Advantages: are the advantages that are taught through years. Like producing in a other country because of lower costs. 2. Thinking in terms of factor proportions theory, what production factors are most important in theautomotive industry?Based on your answer, what countries would appear to possess the mostadvantages for manufacturing cars?Justify your answer.
Each country should export products that are ‘unnecessary’ to the country. Where the country have already too many of it. And the country should only import when the product has a high demand. 3. As a nation, what competitive advantages does South Korea offer to homeͲgrown automakers such as HMC? What are the specific national competitive advantages that have helped HMC succeed in the global car industry? Ŷ Competitive advantageͲAn company has a competitive advantage the company position itself near or better than the competitor. For example the cheap car that was introduced im Canada and the us. 4. Discuss HMC and its position in the global automotive industry in the context of Porter’s diamond model. That is, in regards to HMC’s international progress, what is the role of: firm strategy, structure, and rivalry; factor conditions; demand conditions; and related and supporting industries?
Firm strategy, structure, and rivalry refer to the nature of domestic rivalry, and conditions in a nation that determine how companies are...
Please join StudyMode to read the full document