US lost its competitiveness to Japan in semiconductor sector

Which host economy is better suited for benefiting the home economy through international business?
Relevant Circumstances That Enhance the Success of Nations at Home
When it comes to explaining various perspectives in economic success of nations, Chandler (1995) alleges that big managerial enterprise played a huge role in a country’s competitiveness via the use of economies of scale. For big managerial enterprise to gain while remaining competitive, senior executives should be committed to a three-prolonged investment. This is due to the fact that big corporations have a huge market share to sell their goods.

US lost its competitiveness to Japan in semiconductor sector

As such, they have the ability to create competitive advantage by manufacturing more goods and low cost. The cost of each good is reduced because of mass manufacturing and diversified brand line. US lost its competitiveness to Japan in semiconductor sector. A majority of American organizations in semiconductor market including Silicon Valley did not make lasting investment in manufacturing and management, which was essential as pioneers in this sector (Chandler 1992).        Thus, Japanese firms had the ability to make the needed investment to become pioneers in semi-conductor sector. This allowed them to create the potential to destroy US firms’ competitiveness.

US lost its competitiveness to Japan in semiconductor sector

Conclusion
In general, Porter’s theory of national competitiveness to some degree considers the differences in countries’ business and comparative economic success in various sectors. Nonetheless, the framework does highlight and define the manner in which culture, historical events, late industrial period and globalisation. These are relevant determinants of economic performance of a country and differences of business structures.

US lost its competitiveness to Japan in semiconductor sector

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US lost its competitiveness to Japan in semiconductor sector