0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
What could not prevent a market from becoming perfectly competitive?
Trade embargos and corruption are factors that could prevent a given market from becoming competitive. These factors usually lead to uneven playing ground as far as the competitiveness of a given market is concerned.
Who said internal factors lead to job satisfaction and insufficient external factors lead to job dissatisfaction?
McGregor'
What factors has lead to the backwardness of women?
Social security and education
Explain why monopolistically competitive firms frequently prefer non price to price competition?
The monopolistically competitive firm frequently prefers nonprice competition to pricecompetition, because the latter can lead to the firm producing where P = ATC and thus makingno economic profit or, worse, producing in the short run where P < ATC and thus losing money,with the possibility of eventually going out of business.Nonprice competition, on the other hand, if successful, results in more monopoly power: Thefirm's product has become more differentiated from now less-similar competitors in the industry.This increase in monopoly power allows the firm to raise its price with less fear of losingcustomers. Of course, the firm must still follow the MR = MC rule, but its success in nonpricecompetition has shifted both the demand and MR curves upward to the right. This results insimultaneously a larger output, a higher price, and more economic profits.
What is National Competitive Advantage Theory of International Trade?
PORTER'S DIAMOND - DETERMINANTS OF NATIONAL COMPETITIVE ADVANTAGE (THEORY OF NATIONAL COMPETITIVE ADVANTAGE)Attempts to analyze the reasons for a nation's competitive advantage in a particular industryIncreasingly, corporate strategies have to be seen in a global context. Even if an organization does not plan to import or to export directly, management has to look at an international business environment, in which actions of competitors, buyers, sellers, new entrants of providers of substitutes may influence the domestic market. Information technology is reinforcing this trend.Michael Porter introduced a model that allows analyzing why some nations are more competitive than others are, and why some industries within nations are more competitive than others are, in his book The Competitive Advantage of Nations. This model of determining factors of national advantage has become known as Porters Diamond. It suggests that the national home base of an organization plays an important role in shaping the extent to which it is likely to achieve advantage on a global scale. This home base provides basic factors, which support or hinder organizations from building advantages in global competition. Porter distinguishes four determinants:Factor ConditionsØ The situation in a country regarding production factors, like skilled labor, infrastructure, etc., which are relevant for competition in particular industries.These factors can be grouped into human resources (qualification level, cost of labor, commitment etc.), material resources (natural resources, vegetation, space etc.), knowledge resources, capital resources, and infrastructure. They also include factors like quality of research on universities, deregulation of labor markets, or liquidity of national stock markets.These national factors often provide initial advantages, which are subsequently built upon. Each country has its own particular set of factor conditions; hence, in each country will develop those industries for which the particular set of factor conditions is optimal. This explains the existence of so-called low-cost-countries (low costs of labor), agricultural countries (large countries with fertile soil), or the start-up culture in the United States (well developed venture capital market).Porter points out that these factors are not necessarily nature-made or inherited. They may develop and change. Political initiatives, technological progress or socio-cultural changes, for instance, may shape national factor conditions. A good example is the discussion on the ethics of genetic engineering and cloning that will influence knowledge capital in this field in North America and Europe.Home Demand ConditionsØ Describes the state of home demand for products and services produced in a country.Home demand conditions influence the shaping of particular factor conditions. They have impact on the pace and direction of innovation and product development. According to Porter, home demand is determined by three major characteristics: their mixture (the mix of customers needs and wants), their scope and growth rate, and the mechanisms that transmit domestic preferences to foreign markets.Porter states that a country can achieve national advantages in an industry or market segment, if home demand provides clearer and earlier signals of demand trends to domestic suppliers than to foreign competitors. Normally, home markets have a much higher influence on an organization's ability to recognize customers' needs than foreign markets do.Related and Supporting IndustriesØ The existence or non-existence of internationally competitive supplying industries and supporting industries.One internationally successful industry may lead to advantages in other related or supporting industries. Competitive supplying industries will reinforce innovation and internationalization in industries at later stages in the value system. Besides suppliers, related industries are of importance. These are industries that can use and coordinate particular activities in the value chain together, or that are concerned with complementary products (e.g. hardware and software).A typical example is the shoe and leather industry in Italy. Italy is not only successful with shoes and leather, but with related products and services such as leather working machinery, design, etc.Firm Strategy, Structure, and RivalryØ The conditions in a country that determine how companies are established, are organized and are managed, and that determine the characteristics of domestic competitionHere, cultural aspects play an important role. In different nations, factors like management structures, working morale, or interactions between companies are shaped differently. This will provide advantages and disadvantages for particular industries.Typical corporate objectives in relation to patterns of commitment among workforce are of special importance. They are heavily influenced by structures of ownership and control. Family-business based industries that are dominated by owner-managers will behave differently than publicly quoted companies.Porter argues that domestic rivalry and the search for competitive advantage within a nation can help provide organizations with bases for achieving such advantage on a more global scale.Porters Diamond has been used in various ways.Organizations may use the model to identify the extent to which they can build on home-based advantages to create competitive advantage in relation to others on a global front.On national level, governments can (and should) consider the policies that they should follow to establish national advantages, which enable industries in their country to develop a strong competitive position globally. According to Porter, governments can foster such advantages by ensuring high expectations of product performance, safety or environmental standards, or encouraging vertical co-operation between suppliers and buyers on a domestic level etc.
What could not prevent a market from becoming perfectly competitive?
Trade embargos and corruption are factors that could prevent a given market from becoming competitive. These factors usually lead to uneven playing ground as far as the competitiveness of a given market is concerned.
What is the Nature and scope of management accounting?
It has to do with Strategic Management. That is: the way in which the managers plan, coordinate, and lead, etc.; in order to gain and maintain competitive advantage.
What are the strategic management process?
The strategic management process is a method by which managers conceive of and implement a strategy that can lead to a sustainable competitive advantage. There are five parts to it.
What are the factors of price leadership?
1. All firms have different cost condition. 2. There can be more than one leading firm ( oligopoly) & thus come to an agreement to avoid price war 3. Largest firm with lowest cost generally becomes price leader. 4. The lead firm has resource advantage and capable of taking risk both at lower price and higher price through promotional activities. 5. Price leadership may also arise because of asymmetric information and it also breaks because of that and lead firm may lose market share. - by sipra7@yahoo.com
What lead to the decline of the Aztec and inca civilizations?
One of the larger factors that lead to the decline of the Aztec and Inca civilizations are people from Europe bringing disease and taking advantage of these people.
How can information technology help an organisation improve competitive advantage?
The power of a competitive advantage based on superior product quality is beginning to wane as more and more firms improve the quality of their products. Flexibility is the new advantage: change fast, keep costs low, respond quickly. In manufacturing companies, flexibility can be achieved in a number of ways, such as with smaller production runs, shorter lead times, and more standardized sub-components. In the case of a firm with both good and service, technologies develops, markets, delivers licensing products and services that allow the company to run, manage and automate aspects of its environments, or IT infrastructures, which are critical to their business within the three segments.
How does urbanization and competitive global economy lead to deforestation?
The urbanization and competitive global is what raises the labor cost. This is for farmers.
How does the competitive exclusion principle lead to resource partitioning?
it doesnt
What has the author Gareth Havard Griffiths written?
Gareth Havard Griffiths has written: 'An investigation into the process, context and organisational factors that lead to IS driven sustained competitive advantages in financial services, retailing and manufacturing'
What actor played lead in the movie the firm?
Tom cruise
What are the advantage of lead acid accumulator?
sad
What are advantages of backward integration?
Backward integration can lead to cost savings, better quality control, increased operational efficiency, and more control over the supply chain. It can also provide a competitive advantage by securing access to critical resources or technologies.
