ADMS 4900 Chapter Notes - Chapter 7: Factor Endowment, Shampoo

• School: York University
• Department: Administrative Studies
• Course: ADMS 4900
• Professor: John Spano

Document Summary

Many companies have realized the hardships of competing internationally. However, entering the foreign market can provide many opportunities as seen by canadian companies such as bombardier and aldo. Fa(cid:272)tors affe(cid:272)ti(cid:374)g a (cid:374)atio(cid:374)"s (cid:272)o(cid:373)petiti(cid:448)e(cid:374)ess depe(cid:374)d o(cid:374) four factors which are: factor endowments, demand conditions, related and supporting industries and firm strategy, structure and rivalry. Factor endowments is the (cid:374)atio(cid:374)"s position in factors of production, skilled labor or infrastructure such as labor, land and capital. Demand conditions are the (cid:374)ature of ho(cid:373)e (cid:373)arket de(cid:373)a(cid:374)d for the i(cid:374)dustry"s produ(cid:272)t or ser(cid:448)i(cid:272)es. Cou(cid:374)tries (cid:449)ith demanding consumers drive firms in that country to meet high standards, upgrade existing products and services and create innovative products. Related and supporting industries are the presence or absence in the nation of supplier industries and other related industries that are internationally competitive. Firm strategy, structure and rivalry are the conditions in the nation governing how companies are created, organized, and managed as well as the nature of domestic rivalry.