You are hired as a consultant! Your first assignment is to discuss which competitive advantage you believe the following scenarios fall into: absolute advantage, comparative advantage, or national competitive advantage. Your client also needs you to describe your rationale for your selections on each scenario.
a) A nation has companies with the capacity to make stereo equipment at a much lower price than other national producers because of lower cost labor. The stereo equipment is of the same quality as other international producers.
b) A country mines for a high-demand precious gem only found within that country鈥檚 borders and distributes the gems to jewelry dealers all over the world.
c) An overseas country passes laws to protect certain business practices that other countries may find unsuitable and perhaps unethical. The protection of these business practices are not seen as abusive or exploitive within the overseas country and are also consistent with national social standards.|||Just start your business in China, India .....|||Damn it, man. You know, I%26#039;m actually qualified to answer your question. And I could write a whole 20-page report on this. But I won%26#039;t.
Do your homework.
Or pay me to do it!|||A) National Competitive advantage: you can produce the same thing cheaper... you have the advantage.
B) Absolute advantage: your the only one who produces the gems...hence absolute advantage. An example would be the huuuuge Diamond mines in Africa.
C) Comparative advantage: Your countries practices allow you produce items at an advantage because other countries think these practices are unethical. Look at the sweat shops in mexico.
