What is the difference between firm-specific and country-specific advantages?
Findings indicate that 10 major factors comprised of firm-specific and country-specific advantages drove the focal case study firms abroad: the firm-specific factors ranged from financial and operations supremacy; excellence in value chain activities; inexpensive human resources; rapid learning capabilities in …
What is competitive advantage of a country?
Competitive advantage refers to factors that allow a company to produce goods or services better or more cheaply than its rivals. These factors allow the productive entity to generate more sales or superior margins compared to its market rivals.
What are country specific advantages of the Philippines?
The Filipino workforce is one of the most compelling advantages the Philippines has over any other Asian country. With higher education priority, the literacy rate in the country is 94.6% – among the highest. English is taught in all schools, making the Philippines the world’s third largest English-speaking country.
What is FSA and CSA?
Firm-specific advantage (FSA) and country-specific advantage (CSA) are core components of international theories, which are crucial to describe the international expansion patterns of any MNE (Rugman and Verbeke, 2001). Rugman (1981) integrates the two components and builds the FSA/CSA framework, as shown in Figure 1.
What kind of advantage does a country have?
A country has an absolute advantage in those products in which it has a productivity edge over other countries; it takes fewer resources to produce a product. A country has a comparative advantage when a good can be produced at a lower cost in terms of other goods.
What are the 5 competitive advantage strategies?
Here are five types of competitive strategy and an example for each:
- Cost leadership.
- Product differentiation.
- Customer relationship management (CRM)
- Cost focus.
- Commitment to customers strategy.
What is the comparative advantage of the Philippines to other countries?
What product does the Philippines have a comparative advantage over other countries?
The Philippines has a revealed comparative advantage in exporting from high technology industries. They constitute more than 50 percent of total goods exports, and they were affected during the global financial crisis.
What is a firm-specific advantage?
Firm-specific advantages (FSAs) are defined as a “unique capability proprietary to the organization… built upon product or process technology, marketing, or distribution skills (Rugman, 2005, p. 34).” Thus FSAs include brand power, corporate culture, technological know-how, and innovative capabilities.
What are FSAs in business?
Scholars have suggested that the origins of firm-specific advantages (FSAs) are the local environment in which a firm is based.
What country has an absolute advantage?
What Are Examples of Nations With an Absolute Advantage? A clear example of a nation with an absolute advantage is Saudi Arabia, The ease with which it can reach its oil supplies, which greatly reduces the cost of extraction, is its absolute advantage over other nations.
What are two advantages to specialization?
Specialization can increase productivity and provide a comparative advantage for a firm or economy. Microeconomic specialization involves the individual actors and economic components, and macroeconomic specialization involves the broad advantage an economy holds in production.
What are the four sources of competitive advantage?
The four primary methods of gaining a competitive advantage are cost leadership, differentiation, defensive strategies and strategic alliances.