INTBUS 6 Lecture 33:
23 Oct 2020
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Document Summary
Natural resource scarcity and the closed- loop supply chain: a resource-advantage view. Resource-advantage (r-a) theory: a theory of competition that incorporates dynamic demand and competition. Could lead to a fail to plan for potential future status conditions. Seven macro-level forces cause dynamic change in a resource"s status: Degradation exacerbated as population and consumption levels increase, and damage to resource base occurs faster than earth"s natural cycles can recover. Competition (acts upon locational availability; from available to scarce) Discovery (acts upon locational availability; from scarce to available) Highly demanded resources will move from local to global scarcity, impacting local markets. Firms seek to gain advantage over rivals by securing scarce resources and by attacking their competitors" factor markets to prevent access to valuable resources. Reclaiming or improving underlying resource bases can increase renewability and lessen scarcity impact. Innovation and technology have found new sources of natural resources, increased productivity in exploration and discovery processes.
