National Competitive Advantage Flashcards, test questions and answers

Discover flashcards, test exam answers, and assignments to help you learn more about National Competitive Advantage and other subjects. Don’t miss the chance to use them for more effective college education. Use our database of questions and answers on National Competitive Advantage and get quick solutions for your test.

What is National Competitive Advantage?

A nation’s competitive advantage is its ability to outperform other countries in the production of goods and services. It is a key factor in determining the economic success of a country. National competitive advantage can be achieved through factors such as low labor costs, access to raw materials, technological advancements or innovation, economies of scale, and strategic positioning.Low labor costs are an important factor for achieving national competitive advantage because it reduces the cost of production and enables products to be sold at lower prices than those from other countries. This is particularly true if there are large pools of educated workers in a country that can work for less than their counterparts elsewhere. Access to raw materials can also give a country an edge over its competitors by reducing the cost of inputs required for production. Countries with natural resources such as oil may have an advantage over those without them since they don’t need to purchase these resources from outside sources at higher cost.Technological advancements or innovation could also provide a nation with an edge over its competitors by allowing it to produce higher-quality products more efficiently or at lower cost than rivals. Innovation could also help create new markets that wouldn’t exist otherwise and open up opportunities for exporting goods across borders.Economies of scale is another important factor when considering national competitive advantage since it allows companies to increase their output while reducing their costs per unit produced. For example, larger companies may be able to benefit from purchasing bulk orders at discounted prices or being able to spread fixed costs out across more units produced which results in reduced unit prices overall compared with smaller producers who cannot take full advantage of these economies of scale due to limited output volumes. Finally, strategic positioning plays an important role in determining national competitive advantage as well since this involves decisions about where a company should invest resources (both financial and human) in order to best capitalize on market opportunities around the world while minimizing risks associated with operating abroad (such as political risk). Strategic positioning requires careful consideration regarding what markets should be targeted based on size/growth potential as well as where within those markets companies should focus their efforts so they are not competing directly against each other but rather cooperating together so both parties benefit from increased sales volume associated with greater market penetration levels than either could achieve on their own due to limited resources available for investment abroad relative what would be necessary if each were competing against one another individually instead.