The analysis describes the views pankaj ghemawat

Introduction:

This video has discussed about the business innovation and it’s important in present context. It highlights different aspects of business innovation and its application in different companies. The implication of business innovation model is that application of proper business model can give competitive advantage to the organisation in changing business environment. It is mentioned in the video that there may be 55 different types of innovation pattern in business. However, every business needs to choose the business model according to their capacity, resource and internal business environment (Chesbrough 2013). If there is inconsistency in business model and innovation pattern, lack of coordination may be resulted in business failure. Every business needs to have four processes such as initiation, ideation, integration and implementation. With the changing business environment, every co

The appropriate application of CAGE framework can be seen in case of Canada and US trade. Canada is the largest trade partner of US in the international trade. Being neighbour country of US, Canada has similarity in official language and culture with US. Per capita income is almost similar in Canada with US. Another factor for the successful bilateral trade is interdependency. Canada is major supplier of agricultural products to US. Moreover, valuable drugs are supplied by Canada to US at cheap rate. As US is major trading partner of Canada, Canada receives 20% of its GDP from export to US (Coughlin and Novy 2013). USA is major supplier of industrial products in Canada. Canada and USA both supports each other in employment aspect. In the CAGE framework, international trade may occur if there is comparative advantage in producing one good despite having differences in size. Economic distance may not be barrier for international trade if both the countries enjoy comparative advantage in different goods. USA is larger compared to Canada and therefore has absolute advantage in production. USA has greater resources in terms of capital. Trade between two countries is successful as both of them have competitive advantage in producing the exported good. Comparative advantage exists if there is a difference in opportunity cost of producing one good. A country produces and export that good, which has less opportunity cost compared to other goods.

Dentchev, N., Baumgartner, R., Dieleman, H., Jóhannsdóttir, L., Jonker, J., Nyberg, T., Rauter, R., Rosano, M., Snihur, Y., Tang, X. and van Hoof, B., 2015. Embracing the variety of sustainable business models: Social entrepreneurship, corporate intrapreneurship, creativity, innovation, and other approaches to sustainability challenges. J. Clean. Prod, 113, pp.1-4.

Laukkanen, M. and Patala, S., 2014. Analysing barriers to sustainable business model innovations: innovation systems approach. International Journal of Innovation Management, 18(06), p.1440010.