What Are the Four Factors Identified in Michael Porter's Model

question 43

Essay

What are the four factors identified in Michael Porter's model of the competitive advantage of nations? What is the significance of these four factors to a firm's choice of international business-level strategy?

Identify the key obstacles to economic growth in DVCs.

Understand the role of foreign aid and direct foreign investment in economic development.

Assess the challenges and opportunities presented by global population dynamics for economic development.

Examine the influence of technological advancement and resource availability on economic growth.

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Definitions:

Wall Street Journal

A leading American business-focused, English-language international daily newspaper based in New York City.

Invoice Price

The initial price stated by a manufacturer or producer on the invoice sent to a wholesaler or retailer, before any discounts or allowances.

Coupon Bond

A debt security that pays the holder periodic interest payments until maturity, at which point the principal is repaid.

Current Yield

The annual income from an investment expressed as a percentage of the current market price.