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Q: explain how Lego gained global competitiveness by referring to Porter's Diamond Theory
A:
Explain the common pool resource theory.
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- In our discussion of labor market pooling, we stressed the advantages of having two firms in the same location: If one firm is expanding while the other is contracting, it's to the advantage of both workers and firms that they be able to draw on a single labor pool. But it might happen that both firms want to expand or contract at the same time. Does this constitute an argument against geographical concentration? To answer this question, imagine that there are two companies that both use the same kind of specialized labor, say, two film studios that make use of experts in computer animation. Suppose that there are 250 workers with this special skill. Now compare two different scenarios: In scenario 1, both firms and all 250 workers are in the same city, and each firm is able to hire 125 workers. In scenario 2, the two firms, each with 125 workers, are in two different cities. Now suppose that both firms are contracting, decreasing their demand for labor down to 30 each. In the first…1) What are the key differences between the theory of multinational enterprises and conventional trade theory?Consider the following simplified scenario. Imagine that the Australian national rugby union(for short, Rugby AU) has exclusive rights to organize the games played by the national team.Rugby AU decides that the next match, between the Wallabies and the All Blacks (i.e., theAustralian and the New Zeeland national rugby teams), will be hosted at the Marvel Stadiumin Melbourne. Rugby AU has no fixed costs for organizing the game, but it must pay a marginalcost MC of $20 per seat to the owners of the Marvel Stadium. Two types of tickets will be soldfor the game: concession and full fare. Based on any official document that attests to their age,children and pensioners qualify to purchase concession tickets that offer a discounted price;everyone else pays the full fare. The demand for full-fare tickets is QF(P) = 120 – 2P. Thedemand for concession tickets is QC(P) = 80 – 2P. 2. The market for full fare tickets (F)f) Calculate the inverse demand, write the profit maximizing condition,…
- Consider the following simplified scenario. Imagine that the Australian national rugby union (for short, Rugby AU) has exclusive rights to organize the games played by the national team. Rugby AU decides that the next match, between the Wallabies and the All Blacks (i.e., the Australian and the New Zeeland national rugby teams), will be hosted at the Marvel Stadium in Melbourne. Rugby AU has no fixed costs for organizing the game, but it must pay a marginal cost MC of $20 per seat to the owners of the Marvel Stadium. Two types of tickets will be sold for the game: concession and full fare. Based on any official document that attests to their age, children and pensioners qualify to purchase concession tickets that offer a discounted price; everyone else pays the full fare. The demand for full-fare tickets is QF(P) = 120 – 2P. The demand for concession tickets is QC(P) = 80 – 2P. 1. The market for full fare tickets (F)a) Calculate the inverse demand, write the profit maximizing…Consider the following simplified scenario. Imagine that the Australian national rugby union(for short, Rugby AU) has exclusive rights to organize the games played by the national team.Rugby AU decides that the next match, between the Wallabies and the All Blacks (i.e., theAustralian and the New Zeeland national rugby teams), will be hosted at the Marvel Stadiumin Melbourne. Rugby AU has no fixed costs for organizing the game, but it must pay a marginalcost MC of $20 per seat to the owners of the Marvel Stadium. Two types of tickets will be soldfor the game: concession and full fare. Based on any official document that attests to their age,children and pensioners qualify to purchase concession tickets that offer a discounted price;everyone else pays the full fare. The demand for full-fare tickets is QF(P) = 120 – 2P. Thedemand for concession tickets is QC(P) = 80 – 2P. j) Suppose that Rugby AU becomes unable to verify the age of its customers; thus, theformerly distinct full fare and…Using the Surplus Approach, describe how tendencies for concentration emerge from the regular functioning of competition between capitalist firms.
- You can think of the result in any one game as being Hilary’s marginal free-throw percentage. Based on your previous answer, you can deduce that when Hilary’s marginal free-throw percentage is below the average, the average must be (falling/rising). You can now apply this analysis to production costs. For a U-shaped average total cost (ATC) curve, when the marginal cost curve is below the average total cost curve, the average total cost must be (falling/rising) . Also, when the marginal cost curve is above the average total cost curve, the average total cost must be (falling/rising). Therefore, the marginal cost curve intersects the average total cost curve (at its maximum/at its minimun/when the ATC is at 0).There are two adjacent coal fields A and B. Under the fields is a common pool of coal worth $12 million. Drilling to extract the coal costs $1 million. If each company drills, each will get half the coal and each will earn a $5 million profit. Either company could drill a second time. If one company has two of the three wells drilled, that company gets two-thirds of the coal, yielding a profit of $6 million, and the other company gets one-third of the coal, for a profit of $3 million. If both companies drill a second well, the companies again split the coal, and each earn a profit of $4 million. What is company A's dominant strategy? Should it drill one well, two wells, or is there no dominant strategy? What is company B's dominant strategy? Should it drill one well, two wells, or is there no dominant strategy? What is the Nash equilibrium?Explain the interdependence between 3 economic industries
- Consider the following simplified scenario. Imagine that the Australian national rugby union(for short, Rugby AU) has exclusive rights to organize the games played by the national team.Rugby AU decides that the next match, between the Wallabies and the All Blacks (i.e., theAustralian and the New Zeeland national rugby teams), will be hosted at the Marvel Stadiumin Melbourne. Rugby AU has no fixed costs for organizing the game, but it must pay a marginalcost MC of $20 per seat to the owners of the Marvel Stadium. Two types of tickets will be soldfor the game: concession and full fare. Based on any official document that attests to their age,children and pensioners qualify to purchase concession tickets that offer a discounted price;everyone else pays the full fare. The demand for full-fare tickets is QF(P) = 120 – 2P. Thedemand for concession tickets is QC(P) = 80 – 2P. j) Suppose that Rugby AU becomes unable to verify the age of its customers; thus, theformerly distinct full fare and…Consider the following simplified scenario. Imagine that the Australian national rugby union(for short, Rugby AU) has exclusive rights to organize the games played by the national team.Rugby AU decides that the next match, between the Wallabies and the All Blacks (i.e., theAustralian and the New Zeeland national rugby teams), will be hosted at the Marvel Stadiumin Melbourne. Rugby AU has no fixed costs for organizing the game, but it must pay a marginalcost MC of $20 per seat to the owners of the Marvel Stadium. Two types of tickets will be soldfor the game: concession and full fare. Based on any official document that attests to their age,children and pensioners qualify to purchase concession tickets that offer a discounted price;everyone else pays the full fare. The demand for full-fare tickets is QF(P) = 120 – 2P. Thedemand for concession tickets is QC(P) = 80 – 2P. 2. The market for concession tickets (C)f) Calculate the inverse demand, write the profit maximizing condition,…Porter’s Theory of Competitive Advantage focuses on a nation's global competitiveness in an industry being dependent on innovations (Saylor Academy, n.d). The theory highlights the importance of four specific determinants: factorial, demand, upstream/downstream industries, and domestic competition. The tourism industry may be used to explain growth/development in the Caribbean using Porter’s theory. It suggests that with favorable factors and the improvement of these factors by government interference, competitive advantage can be created. Beautiful beaches and varieties of wildlife are present across the region. This chance of geographical position allowed governments to develop the tourism industry and specialize in ecotourism. Tourism businesses have adopted effective strategies to differentiate their products and increase demand from consumers, achieving growth. This can be attributed to all determinants in Porter’s theory. The views of Porter, Best and Lewis share similarities…
