The objective here is to encourage economic growth in a country and reduce the possibility of an unstable environment. Healthy competition requires a stable economy with a reasonably stable monetary unit. Businesses find it challenging to operate efficiently during periods of high inflation. Ireland’s overall ranking is 37 according to WEF report (2015-2016). 4.
Also, the relationship between the resources and the performance of an organization is not direct but rather characterized by the mediating role of competitiveness. An organization is a combination of resources and competencies and competitiveness is the ability of a company to
Home-based suppliers who boast international competitiveness serve to work with others in their own and related industries to promote the creation of innovations within groups of interrelated organizations. The cooperation of related industries can also aid in providing competitive advantages, especially when it indirectly supports the creation of new skills in other industries. When both of these players work together to promote the competitiveness of a region, they must have “short lines of communication, quick and constant flow of information, and an ongoing exchange of ideas and innovations”. (Porter M. E., 1990, p. 228) However, this is only possible if all companies work together, which identifies the importance of cooperative clusters and the advantages of geographical proximity. In addition, internationally competitive firms lead all members of related and supporting industries to gather knowledge about worldwide needs and possibilities for
Concept of National Competitiveness The concept of National Competitiveness has been in public debate for a long time. The works of prominent neoclassical economists such as Adam Smith and David Ricardo had shown the benefits of trading between countries, with Ricardo 's theory of Comparative Advantage being one of the tenets of international economics. However, Reinert (1995) explains that although in the theory of neoclassical economics, all economic activities are alike in the sense that they are equally good for a nation. That is not the case in reality as some industry will produce industry rents such as higher profits, higher wages and higher taxable income. It is thus through the appropriation of such industry rents that the context
In today’s high competitive globalisation markets, and with its rapid integration of economies and societies, people are living in an increasingly interdependent world. Nation-wide barriers to the stream of goods, people and capital are breaking down, and platforms, policies and processes are standardising. In this report, the author will be exploring three broad sections in order to critically assess the international business environment that are crucial to succeed in the cross-border business. The first section is to discuss between the globalisation and internationalisation. The second section is to identify some issues and challenges business face by managers in an international environment.
Presented below, are the six elements of the diamond of national competitive advantage: FACTOR CONDITIONS Porter (1990) explains that to support competitive advantage, a factor must be greatly specialised to an industry’s specific needs, for example, an optic-specialised scientific institute, or a venture capital pool to fund software firms. This concept rests on the premise that the scarcity of the factor raises the difficulty for foreign competition to imitate. A nation must create the factor, for example, Denmark has two specialised hospitals studying and treating diabetes; it is also the world’s leader in insulin exports (Porter, 1990). DEMAND CONDITIONS Nations achieve competitive advantage in industries where the home demand provides a clearer and earlier image of upcoming buyer needs to companies. Demanding buyers force firms to innovate faster, thus achieving more sophisticated competitive advantages than foreign competitors.
Introduction Economic growth is an increase in a country's productive capacity, as measured by comparing gross national product (GNP) in a year with the GNP in the previous year. And in recent years the idea on sustainable growth has been brought with additional factor: environmental awareness, which is an ideology of understanding the fragility of our environment and the importance of its protection. Thus, there are questions: will the sustainable economic growth throughout the world bring less harm to the environment? Or will increases in income and wealth cause ecological problems? The answers to these question are the essence of our presentation.
Productivity measures the effectiveness and efficiency of a given input to generate the outputs of its products or services. Productivity is a closely monitored indicator on the prospects of a given economy. With the same amount of labour hours contributed by U.S. workers, U.S. businesses
Business efficiency is a scientific category of Microeconomic and macro economy generally. It is the goal that all economists aim with the purpose that they will gain the highest profit with the lowest cost, to expand their businesses, will occupy the market and want to improve reputation and its brand in the market. Firstly, business efficiency reflects the ability to use the resources of the enterprise. "Economic textbook" of P.Samuelson and W.Nordhaus wrote: "The effect that is used the most effectiveness of the economy 's resources to satisfy the demand of human 's desire", economist Prof. N.GREGORY MANKIW of Harvard University in his book "Principles of economics" that "Efficiency means that society obtained the highest results from its scarce resources." Also, agree with this opinion, economic dictionary of Manfred Kuhn wrote, "The efficiency is determined by taking the result by calculating the unit value divided the business cost".
Innovation & Competitiveness As markets are constantly changing, innovation and the willingness to produce new things are becoming one of the main approaches that companies could gain competitive advantage. These changes are driven by consumers who claim more and more, by competitions who continuously come up with new ideas for satisfying needs and by technology which is growing day by day. If firms do not keep up with their markets’ changes and satisfy needs they are basically out of the competition. When talking about innovation and competitiveness I think is essential to mention the ‘blue ocean’ strategy. A clear example that shows innovation is totally related with competitiveness is the case of Ford and the Model T. In 1908, Ford came