This study focuses on the critique of Porter's Model of National Competitive Advantage. In order to fully examine the limitations of Porter's model of national competitive advantage, it is necessary to explain the determinants of Porter's diamond model. Therefore, the Porter diamond model and its elements are analyzed in the first part of the study while the rest of the study explains the limitations of the Porter diamond model which are the theory of late development, the role of the State, multinational companies, foreign direct investment, domestic investments. competitiveness and history. Porter's Diamond Model for National Competitive Advantage The Porter Diamond Model, introduced by Michael Porter (1990a), was created to understand the ways and reasons why businesses and industries create competitive advantage. The model consists of four key elements: factor condition, demand conditions, related and supporting industries, and firm strategy, structure and rivalry which include two additional determinants, government and chance. (Porter, 1990a; Stone and Ranchodd, 2006; Dixit and Joshi, 2011). The first determinant – factor conditions, explains the inputs necessary for production such as capital, natural resources and their accessibility, human capital, technology, science, markets and finally, the geopolitical position of the nation ( Porter, 1990a). The second element of Porter's diamond model studies local demand conditions such as the size of the domestic market, the type of domestic customers, the potential of domestic buyers, and the transferability of domestic demand to foreign countries. markets (Dixit and Joshi, 2011; Wu, 2006)The third determinant of diamond-related and supporting industries examines the industry's suppliers and...... the middle of the paper cycle. Moreover, China is the best example of the importance of the role of government in the national economy. The Chinese government has created a national team to focus on specific sectors such as electronics and automobiles. (Sutherland, 2003). Thanks to this strategy, China became the largest automobile manufacturer in the world by the end of 2012. Furthermore, the Chinese government is very successful in controlling financial markets and owns 3 of the 10 largest banks in the world. On the other hand, in another growing state, India, the government follows a different strategy than the Chinese government, which is to encourage foreign direct investment in the state by lowering tariffs. Eventually, India joined the world's top ten automakers and corporate net profit increased slightly at the end of this process (Sardy and Fetscherin, 2009)