Limitations of the Int

1
Limitations of the Intl PLC Theory

• Definitions of the Product
• Simultaneous Introduction
• Demarcation for each Stage
• Time Duration of each Stage
• No Recommendation for when to Export
• No Recommendation for when to FDI

2
Determinants of the Global Competitive
AdvantageThe Porter Diamond
Firm Strategy, Structure, and Rivalry
Factor Conditions
Demand Conditions
Related and Supporting Industries
3
GOVERNMENT INTERFERENCE WITH TRADE

• Raise Revenue
• Protect Jobs
• Developments Goals
• Balance of Payments
• Health Safety
• Intl Political Goals
• National Security Goals
• Control Prices
• Retaliation

4
TARIFFS

• Export
• Import
• Specific
• Ad Valorem
• Compound

5
QUOTAS

• Export
• Import
• Absolute
• Tariff
• Voluntary Export Restraints
• Embargo

6
FORMS OF TRADE CONTROL

• Tariffs
• Specific
• Ad Valorem
• Compound