Michael Porter theory of Competitive advantage
Urbanization people move from countryside to the big city and the same from small city to the big city.
Competitive advantage.
We need more brainpower than muscle. Knowledge based on economy= education.
Factor conditions
High technique production have certain consumer.
Competition and production is important for a company. They all located in the same place because of infrastructure and can see easier each other what they do.
Consumer must be wealthy and have the money to buy. It is not depend on the quantity of consumers= demand conditions and it depends on cultural and so on.
Florida-creative class. The people who are educated and open-minded and work around world. According him it is not so that company move come where and then educated people move there it is the opposite.
In a market economy you should compete. If you compete you can become rich.
Production of food become cheaper around the world. The more advance a product is the more it cost. High technique production become cheaper. Some product become cheaper because company become more efficient and advance and produce more.
Foreign direct investment.
Get investor who put money in another country.
Why chines buy the Volvo? Because of high techniques, access to market and security and EU.
Most foreign company goes to the rich and developed countries and invests.
Currency relate on countries trust and economy. Before was related on gold. The major reason why we developed euro was to bring sustainable economy.
Swedish riksbank is responsible to hold the money sustainable.
If the Swedish currency increase in value then it is difficult for us to sell our product abroad. Its become more expensive for foreigner to buy Swedish product and Swedish currency.
Convertible currency. You can sell and buy. You cannot buy a non-convertible currency.
Must trade goes between countries inside Europe....