1. COMPETING WITH EAST ASIAN FIRMS
MASAAKI KOTABE
The Washburn Chair Professor
of International Business and Marketing
Temple University
Philadelphia, PA 19122
U.S.A.

2. 1. Ever-Changing World Economy
Which country had 15.6% ($18.56 trillion) of the world’s real GDP ($119.3 trillion) in 2016?
USA
Which country had 35% of the world’s GDP in 1820?*
China
Which Latin American country/ies had a higher per-capita income than Germany, Norway, Finland, Austria, Italy and Spain in 1950?
Argentina & Venezuela
Which country dominated the world economy in the 1980s, slated to overtake the U.S. supremacy in the 21st century?
Japan
Which country was the most economically dominant in the 1990s?
USA
Which country/region will become the most economically dominant in the next 10 years?
???

3. 2. Asian Economies
Overseas Chinese

4. South Korea (11th)
Nominal GDP: $1.41 trillion
Real GDP: $1.93 trillion

5. Combined GDP of
China, Japan, and Korea:
22.61%

6. 3. The Effect of Technology on Economic Performance
What is your impression of the economies of the United States, Japan, Korea, and China?

7. 3a. Change in Country Innovativeness:
A Key to a Country’s Long-Term Competitiveness
Source: Michael E. Porter and Scott Stern, The Challenge to America’s Prosperity, Washington, D.C.: Council on Competitiveness, 1999, pp

8. 3b. Patents in Force (2015)

9. 3c. Resident Patent Applications per Billion US$ GDP

10. 3d. R&D Expenditures as Share of GDP for Selected Countries (2000 – 2015)
Finland
Source:

11. 3e. Top 30 Patent Holders in the U.S. (2016)J K J J J J K J J C K J
Source:

12. 4. Evolution of Global Strategy
1. Globalization of Markets
- Geocentrism;
- Emergence of global customers
2. Globalization of Sources
- Reduction of cost inefficiencies and duplication of efforts
- Improved R&D-manufacturing- marketing linkages…leading to global market infrastructure
3. Globalization of the Intellect
- Opportunities to transfer products, brands and ideas across subsidiaries

13. 5. Location Still Matters
U.S. Automobile Industry in Detroit
Cellular phones in Scandinavia
Dot matrix, bubblejet, inkjet, and laserjet printers & fax machines in Japan
Alcohol-powered automobiles in Brazil
Best-selling Suntory “三得利” beer in China that tastes bad
Bananas exported from Iceland

14. Any questions?

15. *