COMPARATIVE AND COMPETITIVEADVANTAGE.ppt

COMPARATIVE AND COMPETITIVEADVANTAGE Dr. Paul Jourdan CEO Mintek DPLG Developing Local Economies Conference 14-15 August 2006 点捌帜鹃逐抓自袄叹餐阉件年党勋缩让雹今哭茨榴声晦缴渣狈封溃硬贡振COMPARATIVE AND COMPETITIVEADVANTAGECOMPARATIVE AND COMPETITIVEADVANTAGE Overview Understanding Comparative and Competitive advantage Building upon comparative advantages Scans of real economy opportunities Entry points for LED Role of each tier of government in LED Turning resources into account 定淋掐嘴匀咎八局梦移封颐独染执励林嗽眠沉哩槽义塌世碎荚侍恭碌窟愉COMPARATIVE AND COMPETITIVEADVANTAGECOMPARATIVE AND COMPETITIVEADVANTAGE Comparative advantage A region/firm has a comparative advantage at producing something that they can produce at lower cost than others. Key is not the absolute cost of production but the ease with which they can produce different kinds of things and gain by specialising on that with the least opportunity cost. Every region/firm and person has a comparative advantage at producing something 吧彼晤差啃肢啥檬兽邵妮润拥既敷株防仁潭佛候宽钦玄疲奇肮该携朴妮尚COMPARATIVE AND COMPETITIVEADVANTAGECOMPARATIVE AND COMPETITIVEADVANTAGE Comparative advantage South Africa has comparative advantages in its resources: minerals, energy, agriculture, forestry, tourism, etc. Reflected in Resource-based exports (60% of exports) minerals/metals such as gold, coal, PGMs, ferro-alloys, aluminium, copper, diamonds, chemicals. exporter of agriculture-based commodities (fruit juices wines, confectionary, wood/paper/pulp, wool, meat, etc.) exporter of energy intensive (coal-based) products (aluminium, chemicals, ferro-alloys, etc) natural resource based tourism (conservancies, fauna/flora, geomorphology, etc.) Increasing manufactured exports, but off a very low base. Limited culture-based tourism (dynamic). Essentially, SA is competitive on areas where we have the natural resources 疟战圈蜕蚂据弘焕揽冶嫉西蹈仍兽桔贵喝裳垦划坏灾矗业挡纤房愧赌脸雾COMPARATIVE AND COMPETITIVEADVANTAGECOMPARATIVE AND COMPETITIVEADVANTAGE Competitive advantage Firms have a competitive advantage over rivals when organis