The Assignment on Evaluating the Global Context

Running head: EVALUATING THE GLOBAL CONTEXT
Evaluating the Global Context
Name of the Student
Name of the University
Author Note

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Introduction
The study is developed with the aim of discussing the dynamic impacts of the
comparative advantage theory. The term comparative advantage is associated with the low
opportunity cost and better-quality products and services. It reflects the efficient of a particular
economy. Relating to this fact, the paper has introduced the Porter’s Diamond Model to critically
assess the comparative advantageous position of the UK economy and Apple Inc., the largest
tech company across the world. As far as the UK economy is concerned, it owns the third largest
technology sector just after the USA and China. Meanwhile, Apple Inc. has been reported to hold
a market value of around 962 billion in 2019. The company has gained the top position
irrespective of different categories of sectors. This brief discussion has enlightened how the
socio-economic parameters influence the comparative advantageous position of the economy and
organization.
Discussion
Porter’s diamond model is introduced by Michael Porter in his book ‘The Competitive
Advantage of Nations’ in 1990. This is a kind of a strategic economic model. The model is
aimed at explaining why and how a nation owns competitive advantage in a specific industry.
The model delivers a brief description about the external competitive factors for a company. The
company will be able to acknowledge its strength with the help of this model (Capik and
Brockerhoff 2017). It is observed that the success of a business depends on both external and
internal factors. The external factors include geo-political situation, the nosiness strategy of the
competitors and governmental rules and regulations. In terms of the internal factors, the labor
force, work environment, capital flow and financial strength are the important parameters.
According to the paper, the concerned country and company are the United Kingdom and the

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Apple Inc. respectively. The data shows that the technology sector has been performing well
since the last couple of years. The UK technology sector is counted as the world’s third largest
sector after the USA and China. This impressive growth accounts for the emerging foreign
investment in the tech companies and growing domestic demand for the technical gadget and
services (Sukardi, Rusdiawan and Wardana 2019). Th e revenue of the technical companies
operating in the UK has been surged up around 5% during 2018. This evolving growth is the
attractive feature for the foreign tech companies like Apple. The company has been reported to
hike revenue by 20% in the last quarter as compared to same quarter of the last year.
In this context, the brief analysis of the Porter’s Diamond Theory is necessary to
understand the comparative advantage of Apple in the UK economy. The Porter’s Diamond
model asserts that there are some significant parameters which define the comparative efficiency
of the company. These pilers are related to the presence of advanced quality, specialized inputs
available to the company, market size and modification of local consumer needs, domestic
availability of supporting industries, government rules and incentives, and political influencing
factors. Comparative advantage refers to the situation where the economy produces goods and
services in more efficient way than other economies (Li-Xia et al. 2017). The opportunity cost of
those commodities and services is comparatively less. As per the researchers, the economy
should extend the trade of those products and services which own comparative advantage. This
increases the profit diminishing the cost of production for the economy (Vlados, 2019). This
consequently encourages the producers to invest in the production of those goods. The UK
economy is ranked at 7th position in terms of the country attractiveness index, published by the
Ease of Doing Business report of the World Bank. This index considers several significant
factors related to the country’s business sector, such that, initiating a business, dealing with

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constructions consents, getting credit, paying taxes, trading across borders and resolving
insolvency (Rodrigues and Khan 2015).
Out of all these factors, rank of trading across border reflects the degree of trade
liberalization the economy proposes to the international company. In this regard, the UK
economy has scored a better result to the USA economy. The overwhelming presence of the
Apple retail stores across 16 towns in the UK economy is considered as the outcome of this free
trade policy. Apart from that, this has contributed a lot to the domestic employment sector
(Shuo-Fang and Sue-Wen 2016). The domestic tech ecosystem is now counted as one of the
important employee hubs for the UK economy. Referring to the Porter’s Diamond model, high
quality production inputs, like, labor and technology enhances the output growth. The available
inputs are categorized into two factors, such as, basic factors including environmental conditions,
skilled labors and raw materials. The second category is termed as the specialized factors
considering infrastructure facility, technical knowledge and narrowly skilled workers. Apple has
been able to deliver an impressive growth due to advancement in both the basic and specialized
factors. Being a developed country, the UK economy is structurally developed and holds a
notable size of technically advanced and skilled labors (Mboya and Kazungu 2015). Appl is the
world’s renowned tech company. The company manufactures the world’s most technically
advanced products and services for the customers. Therefore, the manufacturing unit needs
highly technically skilled workers. As per the Global Competitiveness Index, the enhancement of
the skill develops efficiency driven economy. In this case, higher education, product market
efficiency, employee efficiency, financial market, technological readiness and market size are
considered as the important pillars to derive an efficient economy (Kharub and Sharma 2016). In