Is First Mover Advantage a must? Is it an advantage to an MNC? And if so, how do you explain Apple's success (a company which did not invent anything but simply adapted existing products)? Are they an exception or an example of how an MNC should succeed?
Lastly, explain Absolute and Comparative Advantage relative to your country and one of its key products or industry.
IN ANOTHER PARAGRAPH EXPLAIN WHAT YOU THINK OF THIS PERSON RESPONSE WITH CITIATION AND STRONG SUPPORT.
First mover advantage or the strategic advantage gained by being the first country to enter an industry (text pg 155) is valuable but not an absolute necessity for an MNC. Many multinational corporations such as Apple have been very successful without first mover advantage. Apple's advantage is its size and cash flow that allows it control factories in China that make many products and push its products to the front of the line while slowing down competitors supply chain. I would say that Apple is a very strong example of how a MNC should proceed. Companies like Google have followed Apple's lead and adapted new technology and have been incredibly successful.
An absolute advantage which is the ability to produce a good more effectively than other nations (text pg 147). The US holds an absolute advantage in the manufacture of weapons. The united states can produce better and more effective weapons than most other countries in the world.
A comparative advantage is when good produces a good less effectively than other countries but more effectively than it does any other good (pg 149). The US's comparative advantage is primarily in services more so than in production.
No, it its not a must but it can have benefits and also have a huge advantage. Yes, it is an advantage for MNC because it will expand their market base more quickly plus since it is a corporation they have more money, which in return makes it easier.
In terms of Apple, they highly improved their customer friendly products. Because it is a MNC, they find out their best economical and strategic plan. Economically- who is the cheapest and strategically who can actually do the labor. Apple owes it success to their narrowing down of products to a select few, which allowed them to better focus on their quality and customer satisfaction. As far as a first-mover advantage, no they are not an example, but in how a MNC should succeed they are. We can see this by their marketable success in different countries. They offer customers high design, efficiency, portability and great quality in all their products.
The Absolute advantage, according to our text, is the ability of a nation to produce a good more efficiently than any other nation. Comparative advantage is the inability of a nation to produce a good more efficiently than any other nation but an ability to produce that good more efficiently more than it does any other good. Unfortunately an Absolute advantage for America is weapon industries. America is able to produce faster, bigger and more deadly weapons. A comparative advantage would the car industry; we have the ability to produce but other countries do more efficiently.