Advantages Of Porter Diamond Model In Bahrain

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A1: Applying Porter Diamond model in Bahrain "The National Competitiveness" which examines the ability of a national economy of a particular nation to grow. It is measured through a set of factors, policies, and institutions that determine a country's level of productivity. However, Michael Porter assumes that the national competitiveness of businesses is linked with the performance of other businesses. The "Porter Diamond Model" or the "Porter Diamond theory of National Advantage" has been given this title because all factors that are significant in international business competition resemble the points of a diamond.
The Competitive advantage is a set of unique attributes of a nation. It is an advantage, capability, ability, strategy,
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The benefits of Capital Controls Policy is to control the inflow and outflow of foreign capital, the government and the central bank of Bahrain bring measures like imposition of taxes on the flows, restricting the quantity of foreign currency purchase, and bringing legitimate measures to limit foreign currency dealings. The objective of capital control is to limit the instabilities created by capital flows (Moon & et al, 2013). For example; The CBB found a highly turning type of foreign capital like short term bank deposit or investment by foreigners in national shares are addressed as destabilizing(J. Smith, 2014). The CBB may make several measures like imposing taxes on capital inflows or laws to regulate them (Moon & et al,…show more content…
Furthermore for investors, FDI provides the benefits of reduced fees through the awareness of scale economies, and coordination advantages, mostly for integrated supply chains. The preference for a direct investment approach rather than licensing and franchising can also been viewed in terms of strategic control. The government of Bahrain should adopt Foreign direct investment because is critical for developing and emerging the country (J. Smith, 2014).The companies in Bahrain need the sophisticated investors' funding to expand their international
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