Why Firms Pursue International Business
1 Theory of Competitive Advantage
2 Imperfect Markets Theory
3 Product Cycle Theory
Why Firms Pursue International Business
1.Theory of Competitive Advantage: specialization increases production efficiency.
When a country specializes in some products, it
may not produce other products.
Japan and United States have a technology advantage. They are large producers of computer components.
China and Malaysia have an advantage in the cost of basic labor.
Jamaica and Mexico are large producers of agricultural and handmade goods.