1.) In term of comparative advantage, Korea has a high saving rate, and also abundance of production factors- cost-effective labor, knowledge workers, high technology and capital. In term of competitive advantage, Hyundai have various production plant and regional headquarters at different part of the world that contributes to convenient access. Besides that, Hyundai also employs inexpensive labor and sources inputs from low cost suppliers as well as entering various collaborative ventures to cooperate that allows Hyundai to access to foreign partners’ knowledge. Hyundai has superior cost advantages in acquisition of high quality inputs.

2.) Korea’s abundance of production factors such as cost effective labor, knowledge workers, high technology and capital used intensively to produce car allow them to gain the specific advantage in order to produce and exports car. The use of low cost labor and inputs allow Hyundai to remain competitive and acquire superior cost advantages.

3.) Factor conditions: The abundance of cost effective and knowledge workers in Korea gives Hyundai a competitive advantage in the production of cars.
Related and Supporting Industries: Hyundai partnered with Daimler Chrysler to develop new technologies and improve supply chain management that allows Hyundai to have superior cost advantages in the acquisition of high-quality inputs.
Demand Conditions at home: Korean consumers are very demanding which lead to intense rivalry in the domestic car industry that ensures them to improve product continuously.
Firm Strategy, structure, and rivalry: Korea’s domestic car industry is very competitive which make the car producers need to always improve their product’s quality.

4.) The government promoted imports of raw materials and technology at the expense of consumer goods and encouraged savings and investment over consumption. Partly due to this effort, Korea is a home to as substantial industrial cluster for the production of cars and cars parts. Government should encourage and support with concrete benefits such as tax reduction, subsidies or preferential loan. Government also nurturing local firms and their independent technological capabilities. Moreover, the government also consistently adopted export records as performance standards. Korea government also promoting indigenous development to have nationally owned firms to produce locally designed cars. http://icc.oxfordjournals.org/content/early/2011/04/05/icc.dtr010.full.pdf

5.) Ownership-specific advantages: R&D centres in Europe, Japan, and North America; marketing innovation, regional headquarters
Location-specific advantages: inexpensive labor and low cost suppliers; superior cost advantages
Internalization advantages: Factory in various country; partnership with Daimler Chrysler; distribution centres at various location.
Location-specific and internalization would be the most instrumental since the low cost labor and input allows Hyundai to remain competitive while the internalization activities allows Hyundai to expand its market where the Korea domestic market is too small and many other global firms are struggle to survive.

6.) Hyundai has pursued internalization aggressively, which is essential to modern firm. Other than that, Hyundai is able to see crisis as opportunity, with plan to emerge even stronger as well as focusing on efficiency, cost-control, and customer satisfaction, which may be a new standard for car manufacturer in global car industry.