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August 4, 2022

What are the roles of comparative and competitive advantages in Hyundai’s success

The Hyundai case can be found on pp. 100-115. The FIVE (5) case questions can be found on page 115.

1. What are the roles of comparative and competitive advantages in Hyundai’s success? Illustrate your answers by providing specific examples of natural and acquired advantages that Hyundai employs to succeed in the global car industry.

2. In terms of factor proportions theory, what abundant factors does Hyundai leverage in its worldwide operations? Provide examples and explain how Hyundai exemplifies the theory. In what ways does Hyundai’s success contradict the theory? Justify your answer.

3. Discuss Hyundai and its position in the global car industry in terms of the determinants of national competitive advantage. What is the role of demand conditions; factor conditions; related and supporting industries; and firm strategy, structure, and rivalry to Hyundai’s international success?

4. The Korean government has been instrumental to Hyundai’s success. In terms of national industrial policy, what has the government done to support Hyundai? What can the government do to encourage future success at Hyundai? What can the government in your country do to support development or maintenance of a strong auto industry?

5. Consistent with Dunning’s Eclectic Paradigm, describe the ownership-specific advantages, location-specific advantages, and internalization advantages held by Hyundai. Which of these advantages do you believe has been most instrumental to the firm’s success? Justify your answer.

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