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Essay / Research Paper Abstract
This 5 page paper looks at the impact that national factors can have on the potential success of a business in the international environment and the way it may influence potential expansion. The paper discusses general environmental factors, the presence of comparative advantage and the use of Porters Four Facets model to explain the influences. The bibliography cites 20 sources.
Page Count:
5 pages (~225 words per page)
File: TS14_TEsucinter.rtf
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Unformatted sample text from the term paper:
be the major determinate of success, it can have a major impact on its development and expansion. Differences that impact range from influences such as cultures, values and language through
to factor conditions including location and access to resources, which may include natural resources as well as human resources (Thompson, 2007) One phenomenon which has been notices is the
development of certain types of business in a single area. Examples include the textiles industry in China, electronics manufacturing across South East Asia and the outsourcing of call centers and
IT services to India, the development of industry patterns becomes a self supporting cycle, where there is a thriving industry in a specific area new businesses within that industry have
increased potential customers and benefits from the factor conditions which the existing industry has created such as the labor and skills base (Safizadeh et al, 2008), the excising supportive infrastructure
(Ruiz-Torres and Mahmoodi, 2008; Pande, 2006) and the benefit of the reputation of the area (Sirkin, 2006). The issue of cost basis
is also important and the ability of a firm to benefit from what is known as comparative advantage is influential in the ability of a firm to achieve success. This
theory has its foundations with Adam Smith. Smith stipulates that each nation should concentrate on producing goods where they have the absolute advantage (Thompson, 2007, Smith 1994). This means that
they should produces the goods that they can produce in a more effective manner than any other nation. Conversely, in international trade they should also import any commodity where they
have the absolute disadvantage, which is where they can only produce the commodity at a high cost than any other nation. In this way resources are maximized through the comparative
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