Microeconomic Foundations I: Choice and Competitive Markets

This report utilizes articles and books from Professor Potter of "Domestic Competitive Advantage" (Free Press, 1990), "Foundations of Microeconomics", "Global Competitiveness Report 1998" (World Economic Forum) I will. ), 1998), "Competition with a new agenda of competition between enterprises and governments" (Harvard Business School Press, 1998), ongoing cluster statistical survey, the foundation of microeconomic development aiming for prosperity (Harvard Business Review, November / December 1996) No part of this publication is forbidden to copy, transfer to the retrieval system, or transfer it to any part of this publication without the permission of Michael E. Porter.

The macro infrastructure creates the possibility of long-term productivity, but the actual productivity depends on microeconomic conditions affecting the company itself. Competitive countries show excellent business environment (modern transportation and communication infrastructure, high quality research institutions, streamlined regulations, mature local consumers, efficient capital markets etc.). Information technology such as Silicon Valley and Houston energy. The competing countries are developing companies that adopt advanced operation and management methods. In the big country like the United States, most of the most important driving forces that influence competitiveness are the regional level and the local level, not the national level. Federal government policy is certainly important, but the driving force of the micro economy related to fields such as roads, universities, talent pool and cluster specialization is essential.