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04/15/2023

• What is Global Strategic Rivalry Theory ?

• Ways in which a firm can hold a Competitive Advantage

Questions and AnswersReference End of Presentation

Outline of Presentation

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What Is Global Strategic Rivalry Theory ?

• The Global Strategic Rivalry theory of international trade was developed in the 1980s

• As a Means to ‘examine the impact on trade flows arising from global strategic rivalry between Multi-National Corporations.’ It explores the notion that in order to stay viable, firms should exploit their competitive advantage globally and try to keep it sustainable.

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Ways in which a company can hold a competitive Advantage

• Owning intellectual property rights• Investing in research and development• Achieving economies of scale or scope, • Exploiting the experience or learning

curve, • Forging strategic alliances• Strategic mergers and acquisitions.

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Owning intellectual property rights

• Intellectual property laws confer a bundle of

exclusive rights in relation to the particular

form or manner in which ideas or information

are expressed or manifested, and not in

relation to the ideas or concepts themselves.

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Achieving Economics of Scale

• Achieving economies of scale or scope is in fact

leveraging your existing strengths. Scale

economies help reduce cost, pass the benefit to

consumers and expand market share. It is very

important that your capacity is fully utilized.

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Question & Answer

• What is Global Strategic Rivalry Theory ?

• State two ways in which a company can

gain a competitive advantage

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Reference

• http://

www.collegetermpapers.com/TermPaper

s/Economics/International_Trade_Theori

es.html

• http://www.internationaltrade.co.uk/

news.php