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Essay / Research Paper Abstract
This 8 page paper looks at how multi-national corporations may use collaborations of co-operative strategies and the ways in which these might lead to competitive advantages. Different potential strategies are discussed and examples are used to assess if short and long term competitive advantages can be archived with these arrangements. The bibliography cites 10 sources.
Page Count:
8 pages (~225 words per page)
File: TS14_TEMNEcollab.rtf
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Unformatted sample text from the term paper:
advantage of the potential benefits of international trade. In many cases, in order to access markets, or the potential benefits of international trade, the strategy has been one of collaboration
or co-operative structures and strategies. These may be successful, but when looking at them can they be the source of a sustained competitive advantage?
There are many theories that indicate how ands why international trade takes place, the basis of these are the aspects of comparative advantages, with Adam Smith we see the
foundations of what was to become the theory of comparative advantage, although this is not the formation of the theory. Smith stipulates that each nations should concentrate on producing goods
where they have the absolute advantage (Thompson, 2005, Smith 1994). This means that they should produces the goods that they can produce in a more effective manner than any other
nation, Conversely, in international trade they should also import any commodity where they have the absolute disadvantage. Variations have developed, such as Ricardo who took Adams ideas a little further;
Ricardo states that countries and companies within the countries should make their decision of what commodities to produce and export by reference to that which has the smallest absolute disadvantage.
They should also import commodities where the absolute disadvantage is the greatest. This is also known as the theory of comparative advantage. This can be seen as the basis for
international trade today and also explains why there are the development of co-operative structures and strategies, form the purchasing of primarily goods from other areas to the use of outsourcing
arrangements and a major pull factor for collaborations to take place, benefiting both parties, However, if many companies are all doing the same thing, then this may not be the
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