COMPARATIVE ADVANTAGES

Matev et al. (2009) said in “The Corporate Social Responsibility in Bulgaria” that, “We thus perceive that Bulgaria is at the beginning stages of the CSR approach, accumulating the critical mass of know-how, practices, key stakeholder relations and internal communications, knowledge and skills necessary to lay a solid foundation for sustainable implementation of socially responsible management of companies and branches”.

Vietnam is a developing country which have chosen the measure of “making use of comparative advantages” to promote exporting. Vietnamese enterprises especially, those in the industries of garment, sea-products, agricultural products. Vietnam has applied the formula of Recognition of Comparative Advantages (RCA) in its exporting tasks. RCA is measured with the division the parts of a particular exported product into the global integration compared with the total value of exporting:

RCA_ij = (X_ij / X_wj) / (ΣX_ij / ΣX_wj)

X_ij: i- the exporting country with j is the product; X_wj w: the value of the product j to the world; ΣX_ij: the total product exported of the country i and ΣX_wj: the total global value of exporting. If the RCA is ≥ 1, it shows that that country has the comparative advantage in that product, and vice versa to the value of less than 1; that country does not have the comparative advantage in that product. With this formula people can differentiate the rate of the comparative advantage in the product among the countries and through the time. The countries which have the same exporting characteristics will be competitors in the global market, meanwhile, the countries with different exporting characteristics will be supplemented to each other.      

Matev et al., “The Corporate Social Responsibility in Bulgaria”, Revue Management et         Avenir, Nov 2009, Issue 23, p47-60.