A belief popular in the 16th century that exports should be maximized and imports should be minimized.
What is Mercantilism
100
Individual firms gain and maintain distinctive competencies, relative to competitors, that lead to superior performance.
What is Competitive advantage
100
An abundance of cost-effective and well-educated workers give China a competitive advantage in the production of laptop computers.
What is Factor conditions
200
A country should produce only those products in which it has absolute advantage or can produce using fewer resources than another country.
What is Absolute Advantage Principle
200
The collective competitive advantages held by the firms in a nation are the basis for the competitive advantages of the nation at large.
What is Competitive advantage of a nation
200
Japan is a densely populated, hot, and humid country with very demanding consumers. These conditions led Japan to become one of the leading producers of superior, compact air conditioners.
What is Demand conditions
300
It is beneficial for two countries to trade even though one of them may have absolute advantage in the production of all products.
What is Comparative Advantage Principle
300
A key source of competitive advantage for nations
What is Innovation
300
Italy has many top firms in design industries such as textiles, furniture, lighting, and fashion. Vigorous competitive rivalry puts these firms under constant pressure to innovate.
What is Firm strategy, structure, and rivalry
400
Each country should produce and export products that intensively use relatively abundant factors of production, and import goods that intensively use relatively scarce factors of production.
What is Factor Proportions Theory
400
the value of the output produced by a unit of labor or capital
What is Productivity
400
The Silicon Valley in California is a great place to launch a computer software firm, because it is home to thousands of knowledgeable firms and workers in the software industry.
What is Related and supporting industries
500
As a product evolves through its life cycle (3 phases), comparative advantage in its production shifts from country to country.
What is International Product Life Cycle Theory
500
A proactive economic development plan employed by the government to nurture or support promising industry sectors with potential for regional or global dominance.
What is National Industrial Policy
500
A concentration of business, suppliers, and supporting firms in the same industry at a particular location, characterized by a critical mass of human talent, capital, or other factor endowments.