The Studies On Soft Power And The Competitive Advantage Of Nations

With the boost of the latest technology revolution and the improvement of people’s living standards,the proportion of the third industry,namely service industry,accounts for the major in the national economy.As one of the most important part in the third industry,culture industry occupies an crucial role.In the modern international competition,countries attach more importance to the soft power,which largely represents the competitive advantage of nations,instead of the hard power,such as military force and manufacturing capability.According to the Theory of Maslow’s Hierarchy of Needs,people tend to choose the expenditures for the one in the higher hierarchy,especially the cultural products.Specific cultural industry can bring one nation considerable foreign exchange,or even become the pillar of economy.This essay takes the movie industry of the U.S.and the entertainment industry of Korea as the cases and applies the diamond theory to analyze the competitive advantage of industries to illustrate that the cultural soft power has a tremendous influence on the competitive advantage of nations.The core value American Dream was based on the Great Depression in the thirties of 20th century.South Korea put forward so-called Culture-Nurtured Nation Strategy on account of Asian Financial Crises in 1998.These two case are of important theoretical and practical significance.Thesis is divided into five parts.The first part is an introduction,which describes the research background,and existing domestic and foreign researches.The second part is the theory related to the competitive advantage of nations,which applies the Diamond Theory by Michael Porter.In addition,the part analyzes Maslow’s Hierarchy of Needs.The third part connects the cultural industry with competitive advantage to the cultural soft power and takes the U.S.And Korea for examples.The fourth part is about how the competitive advantages of the two nations shape the cultural soft power.The final party is the enlightenment to China and extends some thinkings.