International Marketing 118. 330 Slides

Porter’s Diamond of National Competitive Advantage

GOVERNMENT

Firm Strategy
Structure
and Rivalry
Factor
Conditions
Demand
Conditions
Related and
Supporting
Industries
CHANCE

General Overview

• Govt’s Role in Creating Wealth and Value
• Balanced vs. Unbalanced Growth
• Facilitators of Trade
• Protectionism
• tariffs
• quotas
• voluntary restraints
• monetary barriers
• technical standards
• local content rules

General Overview

• Multilateral Trade Organizations
• GATT (General Agreement on Tariffs and Trade)
• WTO (World Trade Organization)
• IMF (International Monetary Fund)
• IBRD (International Bank for Reconstruction and Development--World Bank)
• Regional Development Banks
• Common Market Arrangements
• Free Trade Agreements
• Direct Foreign Aid Agencies

General Overview

• Growth of Transnational/Multinational Enterprise
• Marshall Plan in the U.S.
• U.S. Foreign Direct Investment
• Development of Information Technology
• Market Failure to signal efficiencies and profits
• Desire to Diversify
• New, More Profitable Markets
• Response to Gov’t Policy which emphasized national defense and internal market protection

General Overview

• World Response to Multinationals and DFI
• Canada
• United States
• Western Europe
• Asia
• Developing Nations
• Newly Emerging Democracies

General Overview

• Factors Shaping Attitudes Towards Multinationals
• Development Needs -- Pro and Con
• Technology Needs -- Pro and Con
• Risk Sharing Needs -- Pro and Con
• Market Organization Needs -- Pro and Con
• Government Policy Needs -- Pro and Con