Competitiveness of Resources at Business Disposal Summary

Competitiveness of Resources at Business Disposal
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Competitiveness of Resources at Business Disposal
Companies are striving to maximize their output to the market through different business strategies in the current business world. Business strategies are critical for adopting a specific business strategy offering a competitive edge over other businesses. In the 21st century, adopting and maintaining a competitive edge by companies is brought about by the primary application of intangible and tangible resources at the disposal of a firm (Angwin & Cummings, 2017). In support of Angwin and Cummings, Barney (1991) argues that rare and valuable resources significantly contribute to offering a business an upper hand in developing and maintaining a competitive advantage. To identify the necessary resources required for market penetration, Lynch's Hierarchy of Resources assessment is critical. Through Lynch's Hierarchy, the model seeks to investigate the competitiveness of resources at business disposal. Lynch's model, in addition, advocates for businesses to exploit their internal resources to achieve a breakthrough within an industry.
In the present era, many ventures are trying to expand the scope of their business activities. Many businesses during their inception operate within certain geographical limits, such as within the boundaries of a nation. As a business expands, however, they need to approach foreign markets market is up for consideration. The matrix involved in foreign markets is complex as the legal environment, demographics, and political environment are not uniform across nations. In an attempt by businesses to expand from the domestic market to foreign markets, strategies are critical. In the penetration of new markets, ventures need to formulate and implement their feasibility studies strategies. Unlike domestic markets, foreign markets experience stiff competition as many reputable and big businesses are involved. These big businesses involve international companies and multi-national organizations with relatively huge resources at their disposal. Business strategies are crucial to counter strategic issues as businesses venture into diverse and specific markets.
According to the theory of comparative advantage as explained by Ricardo, why is trade always possible between two countries, even when one is inefficient compared to others? 
In economics, the law of comparative advantage refers to a party's ability (an individual, a firm, or a country) to produce a particular good or service at a lower marginal cost and opportunity cost than another party. It can be contrasted with an absolute advantage, which refers to a party's ability to produce a particular good at a lower absolute cost than another (Kiyota, 2011). It can be deduced from the above explanation that even if two countries produce similar products, a less disadvantaged country should specialize in producing a product whose cost of production is equal or relatively equal compared to another advantaged trading partner country in producing the same product. Similarly, a country endowed with vast resources in producing a specific product compared to another inferior ...