International Trade Theory Of Comparative Advantage, Global Operations, Free Trade And Porter 's Diamond

In addition, the internationalisation is the strategy to occupy the foreign market step by step. Also, the porter’s competitive advantages theory is to analysis the strategies of global business. They could divide to three strategies: over cost leading, diversity, and market focus strategy (Passemard& Calantone, 2000). The cost leading strategy focus on establish efficient scale production facility and minimize the research and advertising cost. The diversity strategy focus on introduce some unique product in whole industry. But, this strategy will with a high cost price. The focus strategy is attack of a particular customer group or specialist regional market, its purpose to design the service for a particular target. Consequently, the companies need to consider the internal and external factor condition, such as: factor condition, demand condition, related and supporting industries condition, and firm strategy and rivalry. They are called diamond system. This dynamic system gives the company a standard to measure theirs advantage and disadvantage before they enter foreign market. Moreover, the specific advantage in Internationalisation of Production is give companies a new choose for exhausted market (Strange,S. 1992). In an international environment, the companies will face more uncertain and unequal condition than home market, therefore the companies need keep the attention of more factors:

Conditions have changed. Global trade has rapidly increased in both volume and value, reaching nowadays more than $4 trillion in 1997 (Daniels J.D., Radebaugh, 1998, pg. 529). Competition is fierce from all corners of the world. Failure at the global level can backfire and may consume existing brands and business relationships. At the same time, global opportunities have emerged that offer possibilities for growth, profit, and an improvement in worldwide standards of living.

3. The leadership qualities of founders and highly skilled labour from Taiwan gives more power to company. Moreover use of latest technology also built up their abilities.

The issue and concept addressed in the case study is trade theories such as competitive advantages and also the benefits and costs brought by international trade and its related government policies.

They are facing difficulty in logistics and procurement restricted to imports from Taiwan. Sometimes, they are also have marketing budget of their products during their promotion.

One of America’s most powerful tool to enhance and prosper the lives of its citizens deals with the principles of trade in the global market. Throughout much of the twentieth century, individuals who embody the roles of a leader or policymaker viewed trade by means of military power. Although in more recent decades, policymakers and leaders went beyond this scope to realize that trade poses even more power than military strength, such as prosperity, investments, enterprises, goods, and international relations that are so strongly needed for more unifying relationships between global actors. Within the United States, trade can be looked at in a perspective of a very powerful business. It attracts investors and manufactures while also proving

The reasons for the company to choose Taiwan as the primary target for its international expansion

There exist classical theories of international trade which discuss the reasons why particular industries and particular economies are more competitive than the rest. In his book The Competitive Advantage of Nations, Michael E Porter argued or analyzed the broad factors which determined the competitiveness of certain economies and industries. This model is based on four nation’s specific factors and two external variables. The four cornerstones of the diamond model are the factor conditions, the demand conditions, the related and supporting industries and

In the recent years, business become more larger due to the advancement of technology, a renewed enthusiasm for entrepreneurship and a global sentiment that favors international trade to connect people, business and market. The economist emphasize about the international trade can increase the production of goods and service, increase the demand from the consumer in local or international, the diversification of goods and services and the stability in the supply and prices of goods and services. As a result, it becomes the main part of the international business and motivated countries to trade with borders. The United States implied the government intervention since the great depression through the financial sector rescue

In addition, environmentalists worry that the industry is now following proprer safetyt precautions with the chemicals it uses.

Since I’m in the healthcare sector, my particular organization has limited mobility in any global scale. A former colleague of mine works for a well known company called Apple. After further discussion and research, I will demostrate in this paper how Apple uses its resources to be a leading powerhouse in the elecontric equipment industry. To begin the global market for companies through the perspective of both economic and political liberalization have offered the firms to operate on a global scale (Berman, 2012). Various firms have increasingly engaged in activities globally that constitutes of exports, imports, outsourcing and the creation of production and sales abroad. The floating exchange rates after the collapse of the

Being the world 's largest economy, the United States is also largest exporter and importer of goods and services. American economic growth relies heavily on trade. According to a recent report on NAFTA, “Since 1992, nearly 20 million new jobs have been created in the U.S., in part due to the 1994 NAFTA agreement. Total trade between the NAFTA partners -- the U.S., Canada, and Mexico -- rose from $293 billion in 1993 to more than $475 billion in 1997, and has increased since. ” (Bowman, Free Trade). It is obvious evidence that international trade is beneficial to the US economy, at least in the 1990s.

Mercantilism was a sixteenth-century economic philosophy that maintained that a country's wealth was measured by its holdings of gold and silver (Mahoney, Trigg, Griffin, & Pustay, 1998). This recquired the countries to maximise the difference between its exports and imports by promoting exports and discouraging imports. The logic was transparent to sixteenth-century policy makers-if foreigners buy more goods from you than you buy from them, then the foreigners have to pay you the difference in gold and silver, enabling you to amass more treasure. With the treasure acquired the realm could build greater armies and navies and hence expand the nation’s global influence.

There are four international competitive strategies that include: global standardization, localization, transnational, and international. Global standardization is a business model based on pursuing a low-cost strategy on a global scale. Localization, on the other hand is a strategy that is focused on increasing profitability by customizing the company’s goods or services so that the goods provide a favorable match to tastes and preferences in different national markets. Moving on transnational strategy, which is a business model that simultaneously achieves low cost, differentiates the product offering across geographic markets, and fosters a flow of skills between different subsidiaries in the company’s global network operations. Last of the international competitive strategies is the international strategy which involves making products at home, while leaving other functions to foreign business units.

Any country should use porter diamond theory of national advantage. It's designed to help understand the competitive advantage nations. It suggests that the national home base of any organizations are playing a supportive role in shaping the size or scoop to which it is likely to achieve advantage on a global scale. This home base provides basic factors, which support organizations from building advantages in international competition. Porter classifies four determinants: Factor Condition, Diamond Condition, Relatives & supporting and Structure, strategy & Rivalry. Egypt government acts to catalysts to improve Egypt position in a globally competitive economic environment. They found that they can create new factors such as skilled labor and high technology (Porter M., 1990). Porter's diamond model suggests threat there are inherent reasons why some nations are more competitive than others on an international market. Another factor that influence in competitive advantages such as the policies that put by government. One of the most influencer policies is (FDI) Foreign direct investment