Segment Assignment 2 Porters Diamond Porter's Diamond Theory (Text Reference Ch 5 Section 5.7 p text reference chapter 5 section 5.7 p 144-147 )

Richard Porter is an Economist and Business Strategy Professor from Harvard who has been the author of numerous theories that have guided Business Managers around the world in the late 20^th and 21^st century. He is also a believer in allowing the Free Market System to work unimpeded by political intervention.

The question that he has answered is how nations create a competitive advantage in any industry. Porters Breakthrough observation is that FIRMS COMPETE NOT NATIONS. For example, In the automobile industry, the US does not compete with JapanUS firms like General Motors, Ford, and Tesla compete with Toyota and Nissan. Nor does the US compete with Germany.US automobile manufacturers compete with Mercedes Benz and BMW. The chart above identifies four factors the reinforce one another to allow domestic firms to compete effectively with other firms around the worlds His theory of National Competitive Advantage is explained in Section 5.7 Please review Porters economic theory carefully and those theories preceding his work beginning with Adam Smith (Absolute Advantage in 1776), David Ricardo( Comparative Advantage in 1817Chapter Section 5.3 ), Heck-Ohlin (Factor Proportions Theory in 1933), later called into question Wassily Leontief (The Leontief Paradox circa 1954 Section 5.4 ) and finally the New Trade Theory (1970s and 1980s Section 5.6).

You must do some research beyond what is presented in the text to better understand Porters thinking. There is lots of information available (The Comparative Advantage of Nations New York Free Press, 1990 and Clusters and the New)

Please be sure to site your sources as you complete this assignment---I am indifferent to the citation convention you choose. Just be sure to cite your sources.

Q 1. Define each of the four factors in Porter's Diamond Theory using examples from one of the following global Industries to illustrate your definition? 30 points (300 Words)

Q2. Explain Porters view of the role of Governments in helping to create a competitive advantage for domestic firms. (20 points 150 words)

Q3. In 2018, the US announced it would place large tariffs on Aluminum imported from China as a way of stimulating the growth of the US Aluminum Industry.

3a. What, if any, impact did these tariffs have on improving the competitiveness of US Aluminum firms? Was there substantial new job creation because of these quotas? (20 points 200 words)

3b. What, if any, impact did these tariffs have on the price of Consumer Goods using aluminum

(Like Canned Soda and Energy Drinks) as a component of production? (10 points 100 words)

3c. Explain why Porter would say protectionist tariffs are counterproductive for creating a competitive advantage for the Nations firms within any industry. (20 points 150 words)

FOOTNOTES (Please cite sources)

BIBLIOGRAPHY (List sources used)