ARBUS301 Lecture Notes - Lecture 2: Absolute Advantage, Comparative Advantage, Mercantilism
24 Dec 2015
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Document Summary
International business: performance of trade and investment activities by firms across national borders. Globalization: ongoing economic integration and growing interdependency of countries worldwide. By specializing in what they produce best and trade for the rest, countries can use scarce resources more efficiently. China is a low labor cost production base. India"s bangalore region offers a critical mass of it workers. Ireland"s repositioning enabled a sophisticated service economy: dubai, a previously obscure emirate, has been transformed into a knowledge-based economy. Comparative advantage: superior features of a country that provide it with unique benefits in global competition derived from either national endowments or deliberate national policies. Competitive advantage: distinctive assets or competencies of a firm derived from cost, size, or innovation strengths that are difficult for competitors to replicate or imitate. Perspectives of the nation and the firm economic superiority. Comparative advantage: is the concept that helps answer the question of all nations can gain and sustain national.
