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<center style="background-color: #f5fffa; border: 1px solid #cef2e0; font-weight: bold;"> <div style="font-size:150%">Country-Specific Advantage</div></center>
<center style="background-color: #f5fffa; border: 1px solid #cef2e0; font-weight: bold;"> <div style="font-size:150%">Country-Specific Advantage</div></center>


See also [[Firm-Specific Advantage]], [[Porter's Diamond of National Advantage]] and [[Strategic Advantage#Sources of Strategic Advantage|Sources of Strategic Advantage]]
==Introduction==


A (Multi-National Enterprise (MNE) operating a plant in a foreign country is faced with additional costs compared to a local competitor. The additional costs could be due to
Pompeii has a reputation for lasciviousness and was often a by-word for sex and prostitution but in reality the people were no more promiscuous than other roman towns and cities and the erotic artwork discovered in Pompeii were sources of art, titillation, fertility and ''lucky charms'' as well as some being deliberately explicit.
(i) cultural, legal, institutional and language differences;
(ii) a lack of knowledge about local market conditions; and/or
(iii) the increased expense of communicating and operating at a distance.  


Therefore, if a foreign firm is to be successful in another country, it must have some kind of an advantage that overcomes the costs of operating in a foreign market. Either the firm must be able to earn higher revenues, for the same costs, or have lower costs, for the same revenues, than comparable domestic firms.
==Depictions of Sex==
The many phallus symbols embedded in to the walls of walls of the city thoroughfares have been crudely analyzed as clever directional arrows pointing to Brothels or marking the brothels themselves. It is more likely that they symbolized both male dominance and prosperity. For instance the giant phallus found outside a bakery is accompanied by the slogan above it
PROFIT = TOTAL REVENUES - TOTAL COSTS - COST OF OPERATING AT A DISTANCE
[[File:Firm_Ctry_adv.jpg|Country/Firm Specific Advantage Matrix|thumb]]


Since only foreign firms have to pay "costs of foreignness", they must have other ways to earn either higher revenues or have lower costs in order to able to stay in business. So, if the MNE is to be profitable abroad it must have some advantages not shared by its competitors. These advantages must be (at least partly) specific to the firm and readily transferable within the firm and between countries. These advantages are called ownership or firm specific advantages (FSAs) or core competencies. The firm owns this advantage: the firm has a monopoly over its FSAs and can exploit them abroad, resulting in a higher marginal return or lower marginal cost than its competitors, and thus in more profit. These advantages are internal to a specific firm. They may be location bound advantages (i.e. related to the home country, such as monopoly control over a local resource) or non-location bound (e.g. technology, economies of scale and scope from simply being of large size).
''Good fortune dwells here''


[[File:phallic_symbol.jpg|200px|Phallic Symbol of Prosperity?]]


[[Country-Specific Advantage|Read More]]
 
[[Pompeii - Eroticism and Prostitution|Read More]]

Latest revision as of 13:18, 10 December 2015

Country-Specific Advantage

Introduction

Pompeii has a reputation for lasciviousness and was often a by-word for sex and prostitution but in reality the people were no more promiscuous than other roman towns and cities and the erotic artwork discovered in Pompeii were sources of art, titillation, fertility and lucky charms as well as some being deliberately explicit.

Depictions of Sex

The many phallus symbols embedded in to the walls of walls of the city thoroughfares have been crudely analyzed as clever directional arrows pointing to Brothels or marking the brothels themselves. It is more likely that they symbolized both male dominance and prosperity. For instance the giant phallus found outside a bakery is accompanied by the slogan above it

Good fortune dwells here

Phallic Symbol of Prosperity?


Read More

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