Discussion Question on country competitiveness

Country competitiveness Is determined by a multitude of movers that measures and compares the military capability of countries In providing firms with an environment that sustains the domestic and International competitiveness of those firms (Sheehan & Lou Chi. 5, p. 130). How a countries excel In bringing firms to contri moreovere to the country competitiveness is the result of many factor that are evaluated yearly by the Forum in order to rank almost every country. The report is called Global Competitiveness Index, although it gloweringers over 500 pages the contented is laid out in an orderly fashion and easy to follow.Lets have a look at how these factors/ determinants influence over FAD strategy. Country-Level, Industry-Level, Firm-Level, Individual-Level Factor-driven economies (Institutions, Infrastructure, Macroeconomic environment, wellness and primary education) The level of competitiveness contributing to the country success can be well due to Its Institutional compet itiveness the competitive advantages that firms create In result of their operation wealth a specific circle of institutions is the driving capability to succeed in a socioeconomic context.Foreign firms will likely redact more where they know there is a good management of legal, lattice and economic institutions to protect their rights and property. Mature infrastructures facilitate connectivity, thus lessening the distance mingled with territories. Strong network infrastructures interconnected with national market encourage economic development. Transport, communication and telecommunication infrastructure system is what allow entrepreneurs to do their business, quick bombard of information increases global economic productivity by allowing businesses to interact and make decisions.Macroeconomic factor alone, even though stable does not Increase the countrys competitiveness but a macroeconomic disorder can actively affect the thrift. Workers need to be able to rely on good heal th services to fend off unnecessary absenteeism. Good health has proven to enable workers to better function. Also, workers who are educated increase their efficiencies at work but are limited to more manual jobs than one where a more elaborate process is involved.Thus, a lack of basic education can also limit the growth off firms capacity to develop. (Sheehan & Lou, up. 139) Mentioned that countries cannot be competitive on every level. Some of the week area can be mitigated through trade agreement. Paraguay is a cognise to experience frequent power shortages at peek hour. That may cause a MEN to choose to locate in another country if their productions fill usage of electricity.Efficiency-driven economies (Higher education and training, Goods market efficiency, Labor market efficiency, Financial market development, Technological readiness, Market size) Well-educated and continuous training is fundamental to firm who privation attractive for a firm that evolves in the market tec hnology and is invariably on a learning path to react and adapt to the fast chiliad IT progresses. To be better positioned in the racket, government with a well balanced set of market rules that does not restrict business productivity, but instead encourages unusual MEN to locate in the country.Per instance, restringing rules and heavy administrative paperwork causes delay that can result in missing out opportunities. In finance, there are always uncertainties, but putting all these factors together can provide a fair level of competitiveness. Not mentioned here though is the impediment of the financial economy when dealing with tax rate, interest rate, deficit and public debt in general also depend on how government manages its public accounts. An example would be a decrease in the FAD inflow in the U.S last year compared to the previous ones. Many factors that caused this decreased percentage of foreign investment are explained by Jackson,J. K. (2013) in a report prepared for c ommittee member of Congress. Innovation-driven (Business sophistication, Innovation) In order to succeed in that factor, support from private and public sector is essential. For example, course of instruction subvention in R& D is often what create a breakthrough in many sectors. Developing countries dont often have the knowledge and the throng like scientist to run that program.