Introduction to Global Business Assignment Example | Topics and Well Written Essays - 500 words

Introduction to Global Business - Assignment Example It is necessary to find out particular industries, which may help in the building of another industry, which will give national advantage. As suggested by President Khama, the country should promote commercial farming and safari tourism in the country. However, commercial farming would probably require a large labor force, which is not ample in Botswana. The question is whether these industries will lead to an increase in the economic development. Since Porter’s theory explicitly states that the comparative advantage needs to be created, if the government encourages tourism, by building proper safari parks, and marketing the tourism industry of Botswana in the international arena, then the conditions of Porter’s diamond theories will be fulfilled. Tourism also does not require much investment, and hence it can work efficiently. If the competition in the commercial farming is increased, then the supply conditions will also be met. The African Safari in Botswana can be an attraction, because it gives individuals to roam around unguided, if they have a car, and they can spot different types of animals, which includes zebras, monkeys, wild boars and many other birds, which will give Botswana an edge in the global market. Hence, using factor conditions, and creating favorable conditions, the government can create comparative advantage for this industry. Fisher and Clark’s structural change theory also suggests that in the case of Botswana, diamonds are not ‘forever’, and therefore there should be a change in the structure, moving from primary to the service industry, in the form of tourism. This would definitely lead to further specialization and economic development (biz-ed, n.p). 3. The government can impose trade barriers, which includes imposing quotas. It can also put custom duties and tariffs on certain products to increase the price of the imported goods to deter people from buying them. Sometimes, the government can