Assignment
Course: MGT600
Sec: 1
“The Competitive Advantage of
Nations summary in relations to
Bangladesh”
Submitted To:
Professor Abdul Mannan
East West University
Submitted By:
N. A. Khan Shishir
ID: 2019-1-95–112
Submission Date: 30th May, 2021
Comparative advantage is the term used to describe the notion that, a country should specialize in
the production of those goods that they can produce in lower opportunity cost than others. In other
words, a country can produce its products with different level of cost per unit of production. They
should specialize in the production of those goods that they can produce with lower relative cost
than other countries. And then with international trade, country can obtain other goods at a lower
price, in exchange for the good in which it has a comparative advantage. Bangladesh, one of Asia’s
youngest countries, is poised to exploit the long-awaited “demographic dividend” with a higher
share of working-age population. Labor is Bangladesh’s strongest source of comparative
advantage, and Bangladesh’s abundant and growing labor force is currently underutilized.
Absorbing the growing labor force and utilizing better the existing stock of underemployed people
requires expansion of labor-intensive activities. In Porter’s Diamond model, being able to predict
or evaluate cluster activities relies on a 4 factor System can be relatable from Bangladesh
perspective:
Factor Conditions: Porter recognizes hierarchies among factors, distinguishing between basic
factor and advanced factors advanced factors are the most significant for competitive advantages
and also advanced factor are a product of investment by individuals, companies and governments.
“To understand the role of factors in the competitive advantage of a nation”, the concept of factor
endowment needs to be explored more meaningfully than the traditional theory of international
comparative advantage described the terms – land, labor, and capital. To know the dynamics and
competitiveness of any strategically distinct industries, Porter suggests to group the factor
