Question: Read the case study below. Then answer the questions that follow Assessing Porter's framework for national advantage: the case of Turkey Source: Oz, O. (2008).

Read the case study below. Then answer the
Read the case study below. Then answer the questions that follow Assessing Porter's framework for national advantage: the case of Turkey Source: Oz, O. (2008). Journal of Business Researck 55/6.509-515 do: 10.101601256300006.3 [...] the Turkish glass, construction and automobile industries confirm Porter's (1990) hypothesis. The former two competitive industries denive considerable advantages from basic and generalized factors like lower labor cost and raw materials. The uncompetitive automobile industry, on the other hand, cannot derive much advantage from factor conditions except from lower labor cost The weaknesses they all suffer conceming advanced and specific factor conditions like industry specific research and education institutions and infrastructure are also in line with Porter's findings, since he argues that many industries in a developing country are more likely to derive most of their advantages from the basic and generalized factors The leather clothing and flat steel industries, however, require special consideration here since both have to import a considerable part of their inputs. Regarding the flat steel industry, the motive of the Turkish government was to establish a local iron and steel industry as a way to achieve industrialization, and not much attention was paid to the availability of the necessary factors and related infrastructure. In other words, although availability of some iron ore and coal reserves probably was encouraging the driving force in the initial foundation of the industry was the cagemess of the govemment rather than the factor conditions In the leather clothes industry, on the other hand, although the cost advantage is now by no means guaranteed due to increasing wages and the necessity to import more than 50% of the raw leather, cheap and good quality raw leather and low cost labor were amongst the important factors in the carly development of the industry. In addition, Turkey does not have any other severe disadvantages in this industry with respect to the key determinants of competitive advantage as defined by Porter (1990). It is in other words, possible to explain this situation within the diamond framework by considering the raw-leather import requirement of the Turkish leather clothes industry as well as increasing labor costs as a 'selective disadvantage, since the competitive position of the industry persists despite the fact that factor-related advantages have weakened considerably 1. Briefly discuss the main factor mentioned in the text conceming Porter's Diamond Model (25 marks) 2- Porter's theory stated that a nation's competitiveness in an industry depends on the capacity of the industry to innovate and upgrade. Was Turkey able to achieve this? Back up your answer with examples from the text. (25 marks)

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