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Switzerland Case

In: Business and Management

Submitted By lwt320
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Why Switzerland makes watches
Switzerland gains marginal advantage by specializing in adding value during the manufacturing of their products, which include chocolate, lace, cheese, pharmaceuticals and watches. They import rather small amounts of raw materials, convert it into more valuable and light-weighted products and export these products while minimizing transportation costs. This is because the country lacks local resources and is characterized by a landscape with lots of mountains and little lowlands, which leads to high transportation costs. This value-adding is based on the skills, care and tradition of Switzerland.

Dutch services and products specializations
A big specialization of the Netherlands is refined petroleum (The Observatory of Economic Complexity, 2014), which is crude oil refined and processed into more useful products. This can be gasoline, diesel fuel or kerosene, for example. Refined petroleum contains 14% of all Dutch export products and 12 % of all Dutch import products.
The future of Dutch export
Of course, like in many other industries the oil-industry in the Netherlands faces some challenges to continue its success. The biggest among them is Human Capital, investing great effort in motivating young starters to work in the oil and gas industry (van Oord & Vergroesen, 2014). Also, the current incentives and taxing regimes will play an important role in this industry (van Oord & Vergroesen, 2014). Areas such as federal and state tax, impacts of existing trade restrictions and the development of unconventional plays in states should be carefully navigated to maximize investments.

The model of Switzerland has some similarities with the Dutch model, but they mainly differ. First of all, both countries gain advantages by adding value during the manufacturing process. Switzerland does this with almost all of its…...

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