MGPO 469 || Error-free Answers 100%.
Name Friedman's 10 flatteners: correct answers 1) berlin wall came down and windows went up;
2) netscape went public; 3) workflow; 4) outsourcing; 5) offshoring; 6) open-sourcing; 7)
insourcing; 8) supply-chaining; 9) informing; 10) "the steroids"
3 critiques of globalization discourse: correct answers globalization is not new; globalization is
incomplete; idea of "even playing field" is flawed
According to Michael Porter, is National Prosperity created or inherited? correct answers It is
created. A nation's competitiveness depends on the capacity of it's industry to innovate and
upgrade. In turn, the diamond of national advantage explains why companies in certain nations
are capable of constant innovation.
What are the 4 broad attributes of a nation that constitute the Diamond of National Advantage?
correct answers 1) factor conditions; 2) demand conditions; 3) related and supporting industries;
4) firm strategy, structure, and rivalry
Factor conditions: correct answers the nation's position in factors of production, such as skilled
labor or infrastructure, necessary to compete in a given industry.
Demand conditions: correct answers The nature of the home-market demand for the industry's
product or service
Related and supporting industries: correct answers The presence or absence in the nation of
supplier industries and other related industries that are internationally competitive
Firm strategy, structure, and rivalry: correct answers the conditions in the nation governing how
companies are created, organized, and managed, as well as the nature of domestic rivalry
,The Diamond as a System: correct answers -The effect of one point on the diamond depends on
the state of others. Weaknesses in any one determinant will constrain an industry's potential for
advancement and upgrading.
-Points are self reinforcing (e.g domestic rivalry stimulates the development of unique tools of
specialized factors)
According to Evans & Rauch, there is a connection between which features of Weberian
Bureaucracy and growth? correct answers Meritocratic recruitment and predictable career ladder
What is the Weberian-State hypothesis? correct answers weberianness is a potential sociological
addition to the small set of robust predictors of growth that have been identified by economists
Define Clusters: correct answers Geographic concentrations of interconnected companies and
institutions in a particular field. They are critical masses of unusual competitive successes.
How are companies and institutions in a cluster linked? correct answers They are independent
and linked Informally.
In which 3 broad ways to clusters affect competition? correct answers 1) by increasing
productivity of companies based in the area
2) by driving the direction and pace of innovation (which underpins future productivity growth)
3) by stimulating the formation of new businesses (which expands and strengthens the cluster
itself)
How do clusters increase the productivity of companies? correct answers 1) better access to
employees and suppliers; 2) access to specialized information; 3) complementarities; 4) access to
institutions and public goods; 5) better motivation and measurement
How do clusters drive the direction and pace of innovation? correct answers 1) unmatched speed
of plugging into customer needs and trends; 2) ongoing relationships = learning how tech,
marketing concepts, etc. are evolving
, 3) provide capacity and flexibility to act rapidly
4) experiment at a lower cost
5) sheer pressure reinforces other advantages
How/Why do clusters stimulate the formation of new businesses? correct answers How: 1)
barriers to entry are lower than elsewhere; 2) presence of cluster usually points to significant
local market
Why: those most likely to start a new firm are likely already in the industry. Those in a cluster
have the best idea of what's not being offered.
What are the two categories of reasons why clusters are advantageous? correct answers
Economic theories (externalities and common pools of labor) and sociological theories
(importance of norms, institutions, and culture).
How can clusters lose their competitive edge? correct answers Due to both external and internal
forces...
- technological discontinuities
- shift in buyer needs
- internal rigidities/constraints to competition that undermine local ricalry
- groupthink
- failure to build capabilities in major technologies or needed supporting firms and institutions
What is a commodity chain? What are the two types? correct answers refers to the whole range
of activities involved in the design, production, and marketing of a product.
Buyer-driven and producer-driven
What is a buyer driven commodity chain? correct answers refer to those industries in which large
retailers, branded marketers, and branded manufacturers play the pivotal roles in setting up
decentralized production networks in a variety of exporting countries, typically located in the
third world.
Name Friedman's 10 flatteners: correct answers 1) berlin wall came down and windows went up;
2) netscape went public; 3) workflow; 4) outsourcing; 5) offshoring; 6) open-sourcing; 7)
insourcing; 8) supply-chaining; 9) informing; 10) "the steroids"
3 critiques of globalization discourse: correct answers globalization is not new; globalization is
incomplete; idea of "even playing field" is flawed
According to Michael Porter, is National Prosperity created or inherited? correct answers It is
created. A nation's competitiveness depends on the capacity of it's industry to innovate and
upgrade. In turn, the diamond of national advantage explains why companies in certain nations
are capable of constant innovation.
What are the 4 broad attributes of a nation that constitute the Diamond of National Advantage?
correct answers 1) factor conditions; 2) demand conditions; 3) related and supporting industries;
4) firm strategy, structure, and rivalry
Factor conditions: correct answers the nation's position in factors of production, such as skilled
labor or infrastructure, necessary to compete in a given industry.
Demand conditions: correct answers The nature of the home-market demand for the industry's
product or service
Related and supporting industries: correct answers The presence or absence in the nation of
supplier industries and other related industries that are internationally competitive
Firm strategy, structure, and rivalry: correct answers the conditions in the nation governing how
companies are created, organized, and managed, as well as the nature of domestic rivalry
,The Diamond as a System: correct answers -The effect of one point on the diamond depends on
the state of others. Weaknesses in any one determinant will constrain an industry's potential for
advancement and upgrading.
-Points are self reinforcing (e.g domestic rivalry stimulates the development of unique tools of
specialized factors)
According to Evans & Rauch, there is a connection between which features of Weberian
Bureaucracy and growth? correct answers Meritocratic recruitment and predictable career ladder
What is the Weberian-State hypothesis? correct answers weberianness is a potential sociological
addition to the small set of robust predictors of growth that have been identified by economists
Define Clusters: correct answers Geographic concentrations of interconnected companies and
institutions in a particular field. They are critical masses of unusual competitive successes.
How are companies and institutions in a cluster linked? correct answers They are independent
and linked Informally.
In which 3 broad ways to clusters affect competition? correct answers 1) by increasing
productivity of companies based in the area
2) by driving the direction and pace of innovation (which underpins future productivity growth)
3) by stimulating the formation of new businesses (which expands and strengthens the cluster
itself)
How do clusters increase the productivity of companies? correct answers 1) better access to
employees and suppliers; 2) access to specialized information; 3) complementarities; 4) access to
institutions and public goods; 5) better motivation and measurement
How do clusters drive the direction and pace of innovation? correct answers 1) unmatched speed
of plugging into customer needs and trends; 2) ongoing relationships = learning how tech,
marketing concepts, etc. are evolving
, 3) provide capacity and flexibility to act rapidly
4) experiment at a lower cost
5) sheer pressure reinforces other advantages
How/Why do clusters stimulate the formation of new businesses? correct answers How: 1)
barriers to entry are lower than elsewhere; 2) presence of cluster usually points to significant
local market
Why: those most likely to start a new firm are likely already in the industry. Those in a cluster
have the best idea of what's not being offered.
What are the two categories of reasons why clusters are advantageous? correct answers
Economic theories (externalities and common pools of labor) and sociological theories
(importance of norms, institutions, and culture).
How can clusters lose their competitive edge? correct answers Due to both external and internal
forces...
- technological discontinuities
- shift in buyer needs
- internal rigidities/constraints to competition that undermine local ricalry
- groupthink
- failure to build capabilities in major technologies or needed supporting firms and institutions
What is a commodity chain? What are the two types? correct answers refers to the whole range
of activities involved in the design, production, and marketing of a product.
Buyer-driven and producer-driven
What is a buyer driven commodity chain? correct answers refer to those industries in which large
retailers, branded marketers, and branded manufacturers play the pivotal roles in setting up
decentralized production networks in a variety of exporting countries, typically located in the
third world.
