6-17. Do some theories work better than others for different industries? Why? The U.S. market for computers is dominated by domestic firms such as Dell, Hewlett-Packard, and Apple. The U.S. market for consumer electronics is dominated by Japanese firms and brands such as Sony, JVC, Panasonic, Mitsubishi, and Toshiba.

However, the U.S. automobile market includes both domestic firms such as Ford and General Motors and formidable Japanese competitors such as Toyota and Honda.

Your instructor will divide the class into groups of four or five and assign each group one of the three industries just noted. To begin, discuss within your group your individual views on why different patterns exist for these industries.

Next, analyze the industry assigned to your group from the standpoint of each country-based and firm-based theory of international trade discussed in this chapter. Try to agree on which theory is the best predictor and which is the worst predictor of reality for your specific industry.

Now reconvene as a class. Each group should select a spokesperson. Each spokesperson should indicate the industry that the person’s group discussed and identify the best and worst theories selected. Note the points on which the groups who analyzed the same industries agree.