Question

Please discuss the national competitive advantage theory and the Porter diamond.

Answer 1

Porter diamond theory of national competitive advantage is a model that is designed for the main purpose to understand the competitive advantage to some nations because certain factors are available to them. It also provide the guidance to the government so that the government can take steps to exploit the advantageous position of the country. This model also provide the path for the companies which invest or operate in the international markets.

As per this model, a country can create factors that would give the country competitive advantages over other countries. An example can be skilled laborers, the advancement of technology in the country, government spending on research and development, or providing funding to companies for research and development.