PD has traded very successfully in its domestic country for many years. It has built up its reputation for quality and reliability as a result of supplying products which are specifically designed to meet the needs of its customers.

PDs directors are now considering launching the companys products in other parts of the world, but they have no experience of trading internationally. The Managing director has heard of Porters Diamond Theory of competitive advantage of nations. He has turned to you as the management accountant to provide some advice on whether Porters theory can be applied to assist PD in its international development, and the factors which should be considered before developing internationally.

Required:

3.1 Advice PDs board of directors of the factors which it should consider before launching the companys products internationally. Your advice should include the assessment of how Porters Diamond Theory can be applied to assist the company in determining whether or not it should develop internationally