Principles of Business Phase Essay

In the aspect of business management, there are several elements and characteristics that organizational leader take into consideration when analyzing the condition of the economy of a certain society or nation. These elements are mainly the certain advantages and disadvantages of each society compare to others in terms of production, resource consumption, and economic benefit. Ideally, business leaders analyze each society based on the economic advantage they posses thus, establishing its fundamental business characteristic for market selection. In the application of this concept, consider the following scenario and the characteristic of the economic advantage each respective has for market analysis and selection. a) A nation has companies with the capacity to make stereo equipment at a much lower price than other national producers because of lower cost labor. The stereo equipment is of the same quality as other international producers. The characteristic of this society is mainly absolute advantage as their production nature possesses more benefits than the other in terms of resource consumption. Ideally, each business leaders desire to have better and effective production with lesser expenses to gain greater profit. Because this society can produce the same quality standard for their product similar to others while having cheaper production cost, their have absolute advantage than the others in terms of production and market selection. Indeed, business organization will desire to utilize the absolute advantage that this nation has for greater profit. b) A country mines for a high-demand precious gem only found within that country’s borders and distributes the gems to jewelry dealers all over the world. The principle for the economic characteristic in this scenario can be considered as absolute advantage mainly because the highly demanded resources can also be produced by their society making it their concrete advantage over the others. Likewise, this characteristic can also be considered as a comparative advantage scenario as the society can also be viewed as not the most efficient producer only that they are the only possible producers. Considering their condition, they might not be the most efficient producers for other products however, they can find certain advantage through specializing and focusing on the highly demanded product, which can only be found in their resource area. c) An overseas country passes laws to protect certain business practices that other countries may find unsuitable and perhaps unethical. The protection of these business practices are not seen as abusive or exploitive within the overseas country and are also consistent with national social standards. The business principle applied in this scenario can be considered as national competitive advantage as the law passed by this nation becomes their significant advantage over the others namely their concern for protecting certain business practices. Other societies might consider this protection perhaps unethical yet this specific nation implemented them while maintaining their adherence to the national standard. As such, business organizations who see much benefit from this protection will take consider applying their production operation in this nation. Thus, the law they passed protection business operation will become their significant advantage though not absolute above others. Bibliography Johansson, Borie & Karlsson, Charlie & Stough, Roger (2002). Regional Policies and Comparative Advantage. Edward Elgar Publication, USA. ISBN-10: 1840648341. Porter, Michael E. (1998). The Competitive Advantage of Nations. Free Press Publication, USA. ISBN-10: 0684841479.