CASE STUDY ON THE ASSIGNMENT.

Running Head: CASE STUDY ASSIGNMENT 1
Case Study Assignment
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CASE STUDY ASSIGNMENT 2
Case Study Assignment
Case Study 1
Question 1
It is undeniable that the comparative advantage theory supports Russia’s oil exportation.
According to this theory, under free trade countries will engage in the production of more goods
if they have a comparative advantage (Ren, & Ma, 2018). Now looking at Russia, it has a
comparative advantage because it has vast oil reserves, and it incurs a less cost of production to
produce oil. In essence, Russia has a relative advantage over other countries in oil production.
Due to the relative advantage of Russia in producing oil, one can apply this theory to explain its
oil exportation. Russia has a comparative advantage because it can export more of its oil without
worries of depletion or high cost of production, unlike some of its competitors.
Question 2
Porter’s diamond of national competitive advantage theory justifies the competitive
advantage a country may possess based on some factor, unlike other countries (Butt, Katuse &
Namada, 2019). Through this theory, one can look at factors that contribute to Russia’s
competitiveness in oil exporting. The theory can also help an individual understand a company
that has a competitive edge over other companies in the global arena. This theory can be used to
explain the competitive advantage of LUKOIL over other countries in oil exporting. In essence,
the theory can be used to describe how Russia has a competitive edge over other countries in oil
exportation. Besides, it can be used to elucidate the competitive advantage of LUKOIL over its
competitors.