...The comparative advantage of Greece in the era of recession Lampros Gallos National and Kapodistrian University of Athens Athens, Greece lam.gal@hotmail.com Abstract The aim of this paper is to investigate the export behaviour of Greece and to identify its comparative advantage. Moreover, through the conclusions of the analysis, is investigated whether the export activity of the country coincides with its comparative advantage especially in the present circumstances, those of recession. Initially, we define the comparative advantage based on the approaches of Adam Smith, David Ricardo's and Heckscher-Ohlin. Furthermore we analyze the current situation of the country, Greece’s economic structure and its trade performance, mainly the exports. In addition we identify the elements of the Greek competitiveness and the results of the fiscal consolidation that Greece is undergoing. Having analyzed the definition of the comparative advantage and the data concerning Greece’s reforms we proceed in identifying Greece’s comparative advantage mainly in four different sectors. Firstly we identify the key factors making the touristic sector extremely profitable for the Greek economy; secondly we analyze the commercial shipping sector then the strategically position of the country and finally the competitive rates in which Greece seems to gain ground. Keywords: comparative advantage, competitiveness, internationalisation, entrepreneurship, financial crisis. 1 Contents: 1....
Words: 4235 - Pages: 17
...presents quantitative indicators on 11 areas of business regulations for 189 economies. It is a tool that allows economies to track progress over the time by comparing each other in respect of building blocks for business. The report further helps policy makers to reduce cost and complexity of government procedures. The report tracks and changes for regulations applying to small or medium companies in 10 areas of life cycle: starting business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, resolving insolvency, enforcing contracts and trading across borders. Because of this report, every year formalities require to setup business getting reduced. On comparing indicators, the year 2013 regulatory witnessed 300 fewer formalities compare to previous year 2012. Of all the indicators, the construction permits is one of regulatory reform where top improvers focused for year 2014. Property registration is another reform where top 7 out of 10 top improvers have implemented changes. 4 out of top 10 have implemented changes in electricity by reducing complexity and cost of getting connection. The report uses simple average approach for weighting component indicators and calculating rankings and distance to frontier (it is a measure that shows how far economy is from highest performance) Here we will compare and contrast two economies for all 11 indicators briefly with details on ranking, distance to frontier...
Words: 2368 - Pages: 10
...Changing revealed comparative advantage: a case study of footwear industry of Pakistan by Naseem Akhtar, Nadia Zakir, Ejaz Ghani Comments • 1 • 2 • 3 • 4 • 5 • 6 • 7 • 8 • 9 • 10 • 11 • Next The study looks at the issues facing the footwear industry regarding its competitiveness in the global perspective and its potential for growth. The methodology of Revealed Comparative Advantage (RCA) is used to analyse the comparative advantage at 2-digit and 4-digit levels of industrial classification. The paper highlights the problems faced by the footwear industry and identifies the role of entrepreneurship for the progress of the industry. The analysis shows that in recent years, specifically the period from 2003-06, the footwear industry has moved from disadvantage (as compared with China and India) position to comparative advantage. The study indicates that there is potential for higher growth of the industry and it can become a source of export earnings. The study suggests that in the rapidly changing global economic environment and in the face of increasing cost of doing business in Pakistan, there is a need to strengthen the competitiveness of the footwear industry in Pakistan. JEL classification: L67 Keywords: Revealed Comparative Advantage, Footwear, Pakistan. 1. INTRODUCTION The global export patterns are changing fast as a result of reduction in trade barriers and technological advancements that have led to gains in productivity and change in...
Words: 5840 - Pages: 24
...SMR001 rP os t MIT Massachusetts Institute of Technology Summer 1985 Designing Global Strategies: Comparative and Competitive Value-Added Chains No Bruce Kogut tC op yo Volume 26 Number 4 Do Reprint 2642 This document is authorized for use only by Fernando Juarez until October 2010. Copying or posting is an infringement of copyright. Permissions@hbsp.harvard.edu or 617.783.7860. PDFs I Reprints I Permission to Copy I Back Issues Electronic copies of MIT Sloan Management Review articles as well as traditional reprints can be purchased on our web site: www.mit-smr.com or you may order through our Business Service Center (9 a.m.-5 p.m. ET) at the phone numbers listed below. op yo To reproduce or transmit one or more MIT Sloan Management Review articles by electronic or mechanical means (including photocopying or archiving in any information storage or retrieval system) requires written permission. To request permission, use our web site (www.mit-smr.com), call or e-mail: rP os t MITSloan Management Review Toll-free in U.S. and Canada: 877-727-7170 International: 617-253-7170 e-mail:smrpermissions@mit.edu To request a free copy of our reprint catalog or order a back issue of MIT Sloan Management Review, please contact: MIT Sloan Management Review 77 Massachusetts Ave, E60-100 Cambridge, MA 02139-4307 Do No tC Toll-free in U.S. and Canada: 877-727-7170 International: 617-253-7170 Fax:...
Words: 7808 - Pages: 32
...The strategy of the mobile phone industry: A comparative analysis of Apple, Sony, Xiaomi The strategy of the mobile phone industry - a comparative analysis of Apple, Sony, Xiaomi I Executive summary The paper sheds lights on the strategy of three mobile phone industry and that task is to perform comparative analysis on Apple, Sony and Xiaomi. The author has first started with the analysis of the macro-environment using strategic analytic tool called PESTLE. The author has used tools such as Porter’s Five Forces and SWOT to analyze the micro-environment of a mobile phone industry and define Key Success Factors that are essential to be included in company’s strategy. Moreover the paper characterizes the comparative analysis such as objectives, strengths, weakness, financial analysis (quantitative), Vario analysis (Qualitative), merger and acquisitions, market share and competitive advantage strategy, of Apple, Sony and Xiaomi. At the end, the author of this assignment has given his recommendation to these three industries and concludes with a set of challenges being faced by mobile phone industry to create and maintain customer values and profit margins for present and future business successes. The strategy of the mobile phone industry - a comparative analysis of Apple, Sony, Xiaomi II Table of Contents LIST OF ABBREVIATION ..................................................................................................................
Words: 5929 - Pages: 24
...A Direct Test of the Theory of Comparative Advantage: The Case of Japan Author(s): Daniel M. Bernhofen and John C. Brown Reviewed work(s): Source: Journal of Political Economy, Vol. 112, No. 1 (February 2004), pp. 48-67 Published by: The University of Chicago Press Stable URL: http://www.jstor.org/stable/10.1086/379944 . Accessed: 10/02/2012 10:27 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. The University of Chicago Press is collaborating with JSTOR to digitize, preserve and extend access to Journal of Political Economy. http://www.jstor.org A Direct Test of the Theory of Comparative Advantage: The Case of Japan Daniel M. Bernhofen and John C. Brown Clark University We exploit Japan’s sudden and complete opening up to international trade in the 1860s to test the empirical validity of one of the oldest and most fundamental propositions in economics: the theory of comparative advantage. Historical evidence supports the assertion that the characteristics of the Japanese economy at the time were compatible with the...
Words: 8511 - Pages: 35
...its analysis is used to explain the key characteristics of this market as well as the two main firms that compete in this market in the United Stated. These firms are Procter and Gamble and Colgate Palmolive which represent the majority of the market share in the United States. Finally, it is found that innovation is a key factor in monopolistic competition because it represents the ability to differentiate products and attract more consumers. The main conclusion drawn from this paper is that the monopolistic competition is the most common model in the United States and the technology and innovation advances have allowed organizations to reach these types of markets and maximize profits. Venezuela vs. United States Economy Have you ever though why some countries are richer than others? Or what there is inequality among countries? All those answers are related to the economy of a country and their macroeconomic indicators. Today, macroeconomic is a crucial concept that we can see every day in the news; employment, inflation, and growth are some of those economy indicators. (1) But it is not so easy to say why a country is richer than other; or why the economy of a country with one of the highest reserve of oils does not have a good economic performance as other countries have. It does not depend on one only thing, there are several factors that increase the gap between two countries in terms of economic development and growth. This paper develops a comparative case...
Words: 976 - Pages: 4
...countries’ primitive accumulation of capital and the main theory is mercantilism. It is claimed of the theory that the only form of wealth is the metal---gold and silver. People can gain them though exchange and for a nation, it is to increase the social wealth. Hereby, the way to gain gold and silver is international trade. II. THE DEVELOPMENT PROCESS OF THE THEORIES: 1. CLASSICAL INTERNATIONAL TRADE THEORY In the late 1790s, the point of mercantilism was challenged by the classical economists. Based on criticizing the mercantilism, Adam Smith proposed the division of labor theory. It has been 41 years from Adam Smith proposed the absolute cost in his the Wealth of Nations in 1976 to David Ricardo proposed the comparative cost in his the Principles of Political Economy and Taxation in 1817. This is the foundation period of international trade theory, that is, the Classical period. The absolute cost of Adam Smith is based on the division of labor theory. Adam introduced the division of labor theory to the field of international trade and established his absolute cost theory, thus demonstrating the fact that a nation can make the sources of each country most efficiently used to gain the increase of the total production, the enhance of consumption level and the save of labor time as long as the nation specially produce the products of which its production cost is lower than any other country in order to exchange the products of which the cost is high than any other country with its...
Words: 1878 - Pages: 8
...The export competitiveness or export performance generally can be measured by several factors, for instance, real exchange rate, comparative advantage, terms of trade, geographic concentration, trade policies, world income etc. However, the standard practice is to use revealed comparative advantage index. This part of the study examines the determinants of export performance of external sector of Pakistan with help of RCA Balassa index. RCA index determines export performance and export pattern of countries. Mahmood (2004) used RCA Balassa index to calculate comparative advantage for the nonagricultural sector of Pakistan. RCA index can be used for commodity specific and region specific but cannot conclude the future comparative advantage....
Words: 744 - Pages: 3
...Internship Report Comparative Analysis of Teletalk Bangladesh Limited Prepared By: Md. Mashiur Rahman BRAC Business School ID: 09104077 Prepared For: Husain Salilul Akareem Internship Super Visor BRAC Business School BRAC University BRAC University Date of Submission: 30th May, 2013 l Letter of Transmittal 30th May, 2013 Husain Salilul Akareem Internship Supervisor BRAC Business School BRAC University 66, Mohakhali, Dhaka-1212 Subject: Submission of internship report for completion of course. This is to inform you that I have completed the internship report. This report focuses on the contribution of Teletalk in Bangladeshi telecom business. The report, titled “Comparative Analysis of Teletalk Bangladesh Limited” has been prepared for the completion of the course, Internship (BUS 400). In making of this report, I have followed all your specific instructions involving report writing so as to present my views and in the easiest manner. However, I will be glad to clarify any discrepancy that may arise. Thank you for your co-operation. Sincerely Yours, ------------------------------Md. Mashiur Rahman BRAC Business School ID: 09104077 BRAC University Acknowledgement I would like to thank those people who have really helped me, encouraged me and show me the way how to work properly regarding my official task in Teletalk Bangladesh Limited and my project work. At first I want to thank to my academic supervisor Mr. Husain Salilul...
Words: 12963 - Pages: 52
...living from tourism. (Survey of literature and research hypotheses.) 5. The impact of events on the development of tourism in a selected micro-region or region through comparative research. 6. The role of training, marketing and advertising in operating rural tourism by indicating a specific area. 7. The impact of tourism developments in Hungary on the life of a settlement or micro-region. Analysis of the impact of developments from economic, ecological and social aspects. 8. Foreign interests in the domestic tourism market. Motivations, targeted areas, concentration of capital and globalisation ambitions. 9. Development of Hungary’s competitiveness in the field of active international tourism, giving a comparative analysis. 10. Actualities of aquatic sports tourism (cyclist tourism, etc.) in Hungary. Motivations, specific expenditure, possibilities, infrastructure, shortcomings and the analysis of the situation at home and abroad. We will accept only one entry per topic. 11. The competitiveness of the Hungarian MICE tourism offer. International survey. Development trends and the expected impact on budget revenue from tourism. 12. Comparative assessment of tenders for central and regional tourism developments. Preliminary impact analysis. Application of economical aspects in the field of regional/local...
Words: 1483 - Pages: 6
...ACADEMIC PAPERa Longitudinal patterns of comparative advantage in the textile complex – part 1 An aggregate perspective Peter Kilduff and Ting Chi Department of Consumer, Apparel and Retail Studies, University of North Carolina at Greensboro, North Carolina, USA Abstract Purpose – This paper seeks to present a preliminary investigation into long-term patterns of trade specialization among leading textile- and apparel-exporting nations, assessing patterns of comparative advantage across the textile machinery, man-made fiber, textile and apparel sectors of the textile complex to determine whether these conform with both trade specialization and industry evolution theories. A model of evolutionary change in intra-complex specialization is defined and evaluated. Design/methodology/approach – A revealed comparative advantage index is employed to evaluate international competitiveness for 30 nations over a 42-year period. With repeated measures, ANOVA is used, to determine the significance of the observed patterns across five income-defined groups of nations. Findings – Long-term patterns of specialization broadly reflect expectations of factor proportions theory and industry evolution models. Product and income group characteristics combine to influence comparative advantage. Higher income nations generally remain stronger in more capital-intensive sectors, while lower income countries have emerged to dominate labor-intensive sectors. However, inclusion of a more...
Words: 6750 - Pages: 27
...A TERM PAPER ON SCOPE AND METHODOLOGY OF ECONOMICS BY ODESOLA, MOSES OLALEKAN SUBMITTED TO DEPARTMENT OF AGRICULTURAL EXTENSION AND MANAGEMENT LECTURER-IN-CHARGE MR. T. A. G. OKEOWO INTRODUCTION It is not easy to say in a sentence what the subject, ‘micro economic’ means without explaining the meaning of economic. Economic can be looked at from various angles and hence each scholars can give their own definition of the subject. It is a social science, and social science is the studies of the behaviors of human being unlike other social science such as philosophy, sociology, political science, anthropology etc. There are many definition of economics, the earliest definition were usually in term of wealth such as the one by Adam Smith who defined economic as: an inquiry into the nature and causes of wealth of the nation. Later on J.S Mill defined economics as the practical science of production and distribution of wealth. Davenport defined economics as the practical science that treats phenomena from the stand point of price. Prof. pigou in his own definition describes the subject as having a lot to do with welfare while Alfred marshal defined economics as a study of mankind in the ordinary business life. Lord Lionel C. Robbins defined economics as ‘the science which studies human behaviors as a relationship between ends and scarce means which have alternative uses’. It can therefore be safely said that economic is the study of production, distribution, exchange...
Words: 1690 - Pages: 7
...Sensitivity Analysis Sherri Fergusson HCS/405 December 22, 2014 Terri Andrews Sensitivity Analysis Many organizations have data analysis to review the financial statements, annual report, and budget issue documents; The Patton-Fuller Community Hospital is no different. In this analysis we will look over and address all of the areas that affect staffing at Patton-Fuller. These areas will vary between the numbers of nurses to the number of patients as well as staff compensation from wages to raises. A comparison of two years’ worth of data while also using Trend Analysis will explain future budgeting aspects and the pros and cons to these decisions. Comparative data is an important tool for managers to use when analyzing data with consistency, verification, and unit measures to fully meet the requirements of understanding the reporting financial results (Baker, PhD, CPA & Baker, JD, 2011, "Chapter 14/Using Comparative Data"). Using Patton-Fuller’s 2008-2009 financial statements to provide a comparative analysis for their expenses that occurred within a 2 year period. Patton-Fuller’s balance sheet provides comparative analysis that total current assets of 130,026 in 2008, and other assets in 2009 of 128,867 decreased to a negative difference of (1159.00). Liabilities reported a gain in 2009 of 462,153 from 2008 213,450 a growth percentage of 46.19 gain. However, factoring the equity of 335,035 in 2008 to 125,564 in 2009 a percentage of 62.52 gain, the total liabilities...
Words: 1355 - Pages: 6
...FINANCIAL ANALYSIS OF DELL AND HP Executive Summary 2 This financial analysis report examines two high profile competitors, Dell and Hewlett Packard (HP), within the computer/technology industry in order to evaluate company performance and financial health. Overall company strategies were reviewed and considered along with the financial analysis to come to a conclusion for recommendation of investment. The reports introduction gives an overview to the computer/technology industry and expands on the strategies executed by Dell and HP. The financial analysis covers both companies’ common-size income statements and balance sheets, comparative income statements and balance sheets, and various financial statement ratios such as liquidity, capital structure and solvency, return on investment, operating performance, asset utilization and market measures from year 2006 to year 2010. A pro forma look ahead estimated financial performance is generated for each company and assumptions explored that helped derive the financial data for the pro forma. Conclusions are drawn from the above stated financial analysis as well as areas for improvement and investment recommendations. Dell and HP are both well known companies competing in an ever evolving and expanding industry. The industry is in every segment from personal to educational to professional. HP is a more mature company having been founded in 1939, but Dell made waves throughout not only the computer/technology industry but in...
Words: 5950 - Pages: 24
