Overview
In internationalisation strategy decision managers need to understand in which way firms’ strategies and national comparative advantage can interact to create competitive advantage.

Activity description
Go to the website and read the article. The article contains an explanation why nations gain competitive advantage in particular industries and the implications for firm strategy. The diamond of national advantage provides a framework for decision managers to assess the essential ingredients for achieving international competitive success.

Consider

• Can the Porter Diamond model be applied in the global factory system?
• What are the limitations of the model?
• What alternative models can be utilised by decision managers?

Visit the following website:
http://www.economie.ens.fr/IMG/pdf/porter_1990_-_the_competitive_advantage_of_nations.pdf