With reference to Figure 14.1, identify a “sheltered industry” (solution attached)

With reference to Figure 14.1, identify a “sheltered industry” (i.e. one that has been subject to little

penetration either by imports or foreign direct investment). Explain why the industry has escaped

internationalization. Explore whether there are opportunities for profitable internationalization within

the industry and, if so, the strategy that would offer the best chance of success.

2. With reference to Table 14.1, what characteristics of national resources explain the different patterns

of comparative advantage for the US and Japan?

3. According to Michael Porter’s Competitive Advantage of Nations, some of the industries where

British companies have an international advantage are: advertising, auction trading of antiques and

artwork, distilled alcoholic beverages, hand tools, and chemical preparations for gardening and

horticulture.

Some of the industries where US companies have an international competitive advantage are:

photo film, aircraft and helicopters, computer hardware and software, oilfield services, management

consulting, cinema films and TV programs, healthcare products and services, and financial services.

For either the UK or the US, use Porter’s national diamond framework (Figure 14.3) to explain

the observed pattern of international competitive advantage.