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Context costs and comparative advantages in the telecommunications sector in Portugal and China
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This Work Project aims to discuss the Context Costs and Comparative Advantages of the
Telecommunications sector both in Portugal and China. The work was built mostly on primary research
by interviews with relevant people (business persons, University Professors and Agencies directors), and
by economic data publicly available. A list of context costs and comparative advantages was drawn for
each country and possible resolutions suggestions were made in the end. The context costs depend
heavily on the economic situation of the countries and it should be taken into account when assessing
the degree of magnitude of each cost of context. The competitive advantages of each country were
drawn in comparison with one another. Some key results stand out: firstly, Portugal’s costs of context
depend mainly on governmental decisions, uncertainties and instability and China’s cost of context
depend primarily on cultural norms, mainly the Guanxi; second, the telecommunications sector shares
most of its context costs and advantages with other sectors; third, China as an economic power could
use the telecommunications sector as a way to further develop and boost its economy.
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Context costs Comparative advantages Telecommunications Portugal China