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Michael Porter's Economic competitive advantage in countries with resources and in countries with lack of resources, it is suggested that countries with resources such as Saudi Arabia or Brazil should make the most of their resources to boost their economies worldwide. While Countries like Singapore which doesn't have any natural resources should turn to entrepreneurship to develop their economies. A multinational when investing in these counties should be able to identify the growth potential for their organization also the country they are investing in.

MNE face an uphill struggle when investing in a country. Not only do they have to look at the investing viability but also the economic, infrastructure and cultural framework of that country in order to succeed. If any of these factors are not met this might result in a high investment cost and low return in other words a bad investment. Source: (vedpuriswar.org)

Companies thinking about going global face a number of challenges which are directly proportional to economic political environment which might result in a successful expansion or there might be obstacles. This usually happens in transition economies. We will be discussing the problems faced by MNEs on an international platform.

Investors are interested in politically and economically stable countries however in transition economies the returns are unpredictable. This unpredictability sometimes is the main reason why some MNE s is hesitant in investing in some economies. The host country has to have a friendly institutional and legal framework so that MNE s can invest without any fear of loss but the legal framework in many countries is volatile which a major deal breaker for many MNE s. Source: (Ghauri & Holstius, 1996).

Example: 例子

Coca Cola has had a controversial role in the world market. According to their statements the company has always acted responsibly and ethically. Their business practice was aimed at creating a market value product with helps the host country economically and environmentally. Columbia considered being a very volatile location for investment has problems with trade unionists and union leaders. Sinaltrainal a Columbian labor union accused Coca Cola and its bottlers Pan American of being complicit in the murders and abduction of union leaders since 1989.In response the Coca Cola Public relations section launched cokefacts.org and claimed that the allegations made against the company were false and unfounded. Their claim was upheld by the Columbian court, the office of the Columbia attorney General and also a court in Miami, Florida. Source: (icmrindia.org)

Competitive Advantage: 竞争优势

'A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices'. Source: (tutor2u.net)

Why the consumer would select one company over the other. A number of factors play a role in this such as price, quality and customer service or after sales service. It can be simply defined as the means by which a company manages to keep making money and sustain its position against its competitors.

Nation Competitive Advantage: 国内竞争优势