Comparative Advantage: Sources
|Topics:||Artificial Intelligence, Engineering, Innovation|
The United States of America (USA) is successful in the global business, education, and technological innovation environments. The country has key comparative advantages that improve the performance in the competitive global environment (Laursen, 2015). The country benefits from generating technology products or services at a reduced opportunity costs than other nations.
The USA has a competitive advantage in technological innovations. Most technology companies that dominate the global environment originated in the United States. Even though these companies operate globally, there headquarters are located in various American cities. Technological giants like Apple, Google, Facebook, Microsoft, Amazon, and Twitter, were founded in the United States. These technological companies have been instrumental in the rapid development of the economy of the United States. There is no other country that can compete effectively with the United States in the area of Information and Communications Technology (ICT).
There are various factors that improve the comparative advantage of the USA in the global technology sector. The country invests financial resources that improve technological innovations. The New York Stock Exchange (NYSE) is a good platform for providing capital to the business organizations that engage in technological innovations, for example, Apple and Facebook. The country invests in effective technology research. The Internet, for instance, was developed at a research facility owned by the US military. The American education system supports technological innovations. Very many innovators acquired their basic technology skills in high school, college, or university. Bill Gates, Mark Zuckerberg, and Steve Jobs are examples of the innovators who made effective technology products or services when they were pursuing university education (Ben-David, 2017).
The USA will still be the leader in technological innovations because of sufficient support from the government agencies like the judiciary that protects the intellectual property rights.
- Ben-David, J. (2017). Centers of Learning: Britain, France, Germany, United States. Routledge.
- Laursen, K. (2015). Revealed comparative advantage and the alternatives as measures of international specialization. Eurasian Business Review, 5(1), 99-115.