Read the following passage carefully and answer question numbers from 11 to 16 :
In terms of labour, for decades the relatively low cost and high quality of Japanese workers
conferred considerable competitive advantage across numerous durable goods and consumerelectronics
industries (eg. Machinery, automobiles, televisions, radios). Then labour-based
advantages shifted to South Korea, then to Malaysia, Mexico and other nations. Today, China
appears to be capitalizing best on the basis of labour. Japanese firms still remain competitive in
markets for such durable goods, electronics and other products, but the labour force is no longer
sufficient for competitive advantage over manufacturers in other industrializing nations. Such
shifting of labour-based advantage is clearly not limited to manufacturing industries. Today, a huge
number of IT and service jobs are moving from Europe and North America to India, Singapore, and
like countries with relatively well-educated, low-cost workforces possessing technical skills. However, as educational levels and technical skills continue to rise in other countries, India,
Singapore, and like nations enjoying labour-based competitive advantage today are likely to find
such advantage cannot be sustained through emergence of new competitors.
In terms of capital, for centuries the days of gold coins and later even paper money restricted
financial flows. Subsequently regional concentrations were formed where large banks, industries
and markets coalesced. But today capital flows internationally at rapid speed. Global commerce no
longer requires regional interactions among business players. Regional capital concentrations in
places such as New York, London and Tokyo still persist, of course, but the capital concentrated there is no longer sufficient for competitive advantage over other capitalists distributed worldwide.
Only if an organization is able to combine, integrate and apply its resources (eg. Land, labour,
capital, IT) in an effective manner that is not readily imitable by competitors can such an
organization enjoy competitive advantage sustainable overtime.
In a knowledge-based theory of the firm, this idea is extended to view organizational knowledge as
a resource with atleast the same level of power and importance as the traditional economic inputs.
An organization with superior knowledge can achieve competitive advantage in markets that
appreciate the application of such knowledge. Semiconductors, genetic engineering,
pharmaceuticals, software, military warfare, and like knowledge-intensive competitive arenas provide both time-proven and current examples. Consider semiconductors (e.g. computer chips),
which are made principally of sand and common metals. These ubiquitous and powerful electronic devices are designed within common office buildings, using commercially available tools, and
fabricated within factories in many industrialized nations. Hence, land is not the key competitive resource in the semiconductor industry.
Based on the passage answer the following questions :
The passage also mentions about the trend of