What Is Rugman's Critique Of Porters Diamond Model?

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What Is the Porter Diamond Model ? He was recognized as a model by Diamond Anybody or layman . Diamond model is one of the economic model was awakened by Porter in 1990 in the titled itself, ' Excess Competition ' than this nation , in which he published himself in his theory . This theory has been founded by Michael Porter that has been used by certain industries sake only, where it will become more competitive in a particular location. By Michael Porter's theory of why particular industries become more competitive in certain locations. This theory is also very impressive in providing counsel competition in the industry today . This theory also be provided by the Porter. He is very important for the industry some that they know will increase and become more competitive in these locations. This theory plays an important role in criticizing or be one way for the industry to develop their trade in certain locations . In addition, diamond models help to understand the comparison between the position in some industrialized countries in the global competition that is very fast . The Porter Diamond Model has four ranked in their models . First, it is a factor conditions. This factor is very important in the construction industry. Secondly , demand conditions . The state of demand is also important in influencing the demand of either party .Third , and related support industries. Endorsement of specific industries also play an important role in advancing economic growth and rapidly . Support from related parties everywhere can help provide ideas may wake industry. In this way , the industry will be memorable without any problems . Lastly, firm strategy, structure and rivalry . Strategy firms are also important in the implementation o... ... middle of paper ... ... from developed countries. In both cases, the implementation of these choices requires the development of multinational activities. Multinational activities are also important in explaining Korea's competitiveness. The most important comparative advantage of Korea is its human resources which have been inexpensive and well-disciplined. However, Korea has recently experienced severe labor problems. Its labor is no longer cheap and controllable. Major increases in the wages in Korea were awarded to a newly militant labor force in 1987 and 1990, which lifted average earnings in manufacturing by 11.6 per cent in 1987, 19.6 per cent in 1988, 25 per cent in 1989 and 20.2 per cent in 1990. Korea's wage level is now comparable to that of the United Kingdom, but the quality of its products has not kept pace. Works Cited http://en.wikipedia.org/wiki/Diamond_model

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