This study focuses on discussing the criticisms of Porter's national competitive advantage model. To fully discuss the limitations of Porter's national competitive advantage model, the determinants of Porter's diamond model should be explained. Therefore in the first part of the study Porter's diamond model and its elements are analyzed, while the rest of the study explains the limitations of Porter's diamond model which are the theory of late development, the role of the state, multinational enterprises , foreign direct investments, national policies, competitiveness and history. Porter's Diamond Model of National Competitive Advantage The Porter's Diamond Model, introduced by Michael Porter (1990a) was created to understand the ways and reasons why companies and industries create competitive advantage. The model consists of four key elements: factor condition, demand conditions, related and supporting industries, business strategy, structure and rivalry which include two additional determinants, governance and possibility. (Porter, 1990a; Stone and Ranchodd, 2006; Dixit and Joshi, 2011). The first determining factor 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 investigates 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 concerns the industry's suppliers and... middle of the paper... cycle. Furthermore, China is the best example of how important the government's role is in the national economy. The Chinese government has created a national team to focus on specific industries such as electronics and automobiles. (Sutherland,2003). As a result of this strategy, China became the largest automobile producer in the world by the end of 2012. Furthermore, the Chinese government manages to control the financial markets very well and owns 3 of the top 10 banks in the world. On the other hand, in another growth state, India, the government is applying a different strategy than China's, based on encouraging foreign direct investment into the state through tariff reduction. India eventually joined the top ten automobile manufacturers in the world and the companies' net profit increased slightly at the end of this process (Sardy and Fetscherin, 2009)