Marco Porter Theory

As of June 2009, USAID claims to have cooperative relationship with more than 3,500 US companies and more than 300 private volunteer groups. a) In the efforts to promote economic development and trade, the United Nations Development Agency has the following elements: a) Commercial support to help the country reduce the cost and risk of doing business; b) Commercial law Review of policies to improve the system; c) Improvement of business regulation by cooperation with the World Bank's "Business Environment" program; d) Development of a diverse and healthy system for the country to build projects and support poor people Promote (www.usaid.gov).

In the constant development of international trade theory, Mr. Michael Porter of Harvard Business School developed a new model to explain the competitive advantage of the country in 1990. Porter's theory is that the competitiveness of a country in an industry depends on the ability of the industry to innovate and upgrade. His theory focuses on why some countries are more competitive in certain industries. To explain his theory, Porter identified four determinants of his relationship. The four determinants are (1) the resources and capabilities of the local market, (2) the demand situation of the local market, (3) the local supplier and complementary industry, and (4) the characteristics of the local company. Factor Condition) Porter states that resources (eg natural resources and available labor) of a country are an important factor in determining the products imported or exported by that country I recognize the value.

Porter's theory is a research that has the essence of self-regulating marketability as a tradition related to neoclassical economics. Porter's theory places geographical innovation and industrialization in geography. It is one of many competitive advantage theories for process and development (O'Connell et al., 1997). Porter's theory focuses on industries working in the country. Countries with specific characteristics and geographical concentration have a competitive advantage and competition exacerbates this process. Figure 1 shows the system characteristics of the Porter Diamond model. This is an overview of the component. The determinants of diamond theory interact, but the system characteristics are variables of diamond theory. Because of this domestic competition, it promotes diamond upgrades nationwide.