The theories based on Ricardo and Heckscher-Ohlin models have explained the mechanism of international trade. However, the selection of the country starting to manufacture a product still has much room for discussion even in recent theories. Why do firms in a specific country start production and build sustainable competitive advantage about a particular product? This study focuses on firm heterogeneity and proposes a comparative advantage of design cost with product architecture theory. In other words, it tries to systematize and analyze the coincidence between organizational capabilities unevenly distributed in a country and the ones demanded to provide the product.
