FROM ADAM SMITH TO MICHAEL PORTER Evolution of Competitiveness Theory
by Dong-Sung Cho & Hwy-Chang Moon (Seoul National University)
Traditionally, a nation's international competitiveness has been explained by international trade theories originating from Adam Smith. However, today's global economy is too complicated to be explained by the traditional trade theories. Recently, Michael Porter of the Harvard Business School introduced a new competitiveness theory, the so-called diamond model. He differentiated his theory from the traditional trade theories by arguing that national prosperity is not inherited, but created by choices; in other words, national wealth is not set by factor endowments, but created by strategic choices. He showed different choices of creating wealth, which had been quite limited in the world of traditional trade theories. His diamond model has lately been extended by several scholars. This book highlights Porter's achievement by comparing it with those of traditional trade theorists and presents new developments of competitiveness theory. By discussing the "before" and "after" of Porter's theory, the authors provide the reader with a holistic picture of competitiveness theory.
Readership: Senior level undergraduates and graduate students in
economics, finance and international business.
"The authors provide perceptive, concise summaries of the significant theories from Adam Smith to Michael Porter, resulting in an excellent overview of economic thought as it pertains to trade."
Choice, 2001
244pp
Pub. date: Nov 2000
eISBN 981-238-522-3
Price: US$73
FROM ADAM SMITH TO MICHAEL PORTER