Question

Construct a model to manage value chain for one of agriculture products. From your model, try to get the national competitive advantages based on the differences between Porter's Diamond Model and Nine Factor Model as a global strategic rivalry trade theory?

Answer 1

comparative advantage country must specialise in those products that it can produce relatively more efficiently than other countries that despite absolute cost disadvantages in the production of goods and services country can still export those goods and services in which its absolute disadvantages are the smallest and import products  with the largest absolute disadvantage. It implies a country with absolute cost advantages in all its products will specialise and export those products where the  absolute advantage is the largest, and will import products with the smallest absolute advantages.

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Comparative advantage also leads to specialisation, but differs from specialisation based on absolute advantage, in that a country will always import,  whether or not it is more or less efficient overall in the production of all goods and  services relative to other countries

• Porter Diamond model offers a way for analysing the national competitivenessbased on the characteristics of the home country.

• According to the Porter Diamond model, the characteristics of the home country play a central role in explaining the international competitiveness of firm. it asserts that the quality of the home country environment influence how successful the company can become in other markets.

  The Porter Diamond model six elements:

• Factor conditions
• Demand conditions
• Related and supporting industries
• Firm strategy, structure and rivalry
• Chance
• Government

These 6 factor of porter diamond model plays an effective role in national competitive advantages