Abstract
Traditional economic theories say that there are a lot of factors for comparative advantage of a country such as the land, the location, the natural resources, the labor and the local population size.
In the opinion of Michael E. Porter, a nation can create new advanced factors endowments. It is why, he created a model determining national advantages, he called this model, the "Porter's diamond".
Porter explains by this model how a country or a region can have a competitive advantage over others. He explains us with six variable keys.
His model includes 4 interlinked factors and also 2 other determinants: government and chance, which are represented below.
