Comparative advantage of switzerland

2. COMPARATIVE AND
ABSOLUTE ADVANTAGE
OF SWITZERLAND
Project of International Business & WTO

3. Presented By:
Arslan Ahmed
 BBA
International Islamic University, Islamabad
H-10



4. Selected Country

Switzerland

5. Country Advantages
Comparative Advantage

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Top pharmaceutical
companies(Medicame
nt)
Swiss Watches
Swiss chocolate
Swiss is also popular
for its Secretive
banking Sector
It’s also popular for
Hospitality Sector
Absolute Advantage



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Tourism industry
Direct Democracy
Location (land
locked)
Hydropower
Agriculture Products

6. Comparative Advantage
Medicament (Pharmaceutical):


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It contributes to 5.7% of the GDP
Contributes to 30% of the exportations
Employs about 135'000 people
Some popular pharmaceutical companies are:

Novartis (Sandoz), Hoffmann-La Roche, Basilea
Pharmaceutica, Actelion andStraumann, Merck
Serono (Serono), Ferring
Pharmaceuticals, Debiopharm, Nycomed, JanssenCilag, Galderma,Mondobiotech, Naari, Weleda, Octapharm
a and Frewitt.

7. Diamond
Porter’s
Model
Firm
Strategy,
Structure,
and Rivalry
Demand
Conditions
Factor
Conditions
Related and
Supporting
Industries

8. Factors of Production

Natural resources



44 % of total private research spending in the Swiss industry


Switzerland’s economy is based on a highly qualified labor force
performing highly skilled work


Switzerland is an important research location for the
chemical and pharmaceutical industry. The number of Nobel
prizes awarded to chemists, biologists and physicians attest
the internationally outstanding quality of research in
Switzerland.
Switzerland's R&D spending sits at 2.7 per cent of its GDP
Labor
Capital
Entrepreneurship


As number of noble prizes is won by Swiss in this industry so
entrepreneurs are motivated
Information

Switzerland come on 3rd number in world ranking in the use of
technology

9. Firm Strategy, Structure &
Rivalry

Firm Strategy


Commercial excellence, launching effective products
irrespective of price factor
Structure


The country pharmaceutical industry posses horizontal
structure, because of which this industry is booming
day by day

Rivalry for Swiss medicine industry is Germany,
France & Ireland
Rivalry

10. Demand Condition


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Only approximately 5 % of the sales are in the
home market; 95 % of the industry's
production are exported
Europe and America each share about 40 % of
the sales, while Asia takes in 23 %
Switzerland is number 8 among the biggest
export nations

11. Related & Supporting Industries
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Human or animal blood prepared for therapeutic
uses
Medical,surgical,dental or vet instruments
Antibiotics
Nucleic acids and their salts
Machines for the removal of material by laser or
other optic means
Carboxyamide-function compounds
Orthopedic appliances, including crutches; splints
and other fracture appliances; artificial parts of the
body; hearing aids

12. Question & Answer Session