From a resourcebased view why are US exports so competitive

From a resource-based view, why are US exports so competitive? From an institution- based view, why are US exports so competitive?

Solution

Resource based view: It is an economic tool to determine the strategic resources that a firm possess. These resources must be used by a firm in such a way that it achieves a competitive advantage over other players. The following things constitutes as resources:

Assets

Processes

Information

Knowledge

Technology

To become competitive a resource should have the following characteristics:

Valuable: Should be of value to the customers

Rare: Not easily available

Imperfectly imitable: Very tough to imitate

Non-substitutable: That cannot be substituted by some other resource

Most of the US exports carry the all above mentioned factors which makes gives them a competitive advantage over others.

Institution based view:

The institutional based view accounts for industry based competition, institutional conditions and firm-specific resources.

The resources developed by US are competitive because of the following factors:

Trade agreements: Agreements such as NAFTA, SAFTA, WTO have enable US to gain a competitive edge over other countries.

Industry specific knowledge base

Availability of latest tools and technologies.