International Trade and Competitiveness

Questions and Answers

Attaining competitive advantage in its key industries

Innovation and specialization

High interest rates

Excel in a particular industry compared to similar industries in other countries Signup and view all the answers

Italy (Footwear) Signup and view all the answers

Ability to design, produce, and market superior products Signup and view all the answers

Productivity in a coordinated area Signup and view all the answers

Natural endowments Signup and view all the answers

Study Notes

Globalization creates competition among nations in various aspects, including social standards, work ethics, clothing, industry, and consumerism.
A country must attain a competitive advantage in its key industries to excel in the international market.

National prosperity is created through innovation and specialization, not inherited natural resources, land, labor, or other factors.
A country's competitiveness is not determined by its national endowments, labor pool, interest rates, or currency value.

A competitive nation is not necessarily one that can compete in all industries, but rather one that excels in a particular industry.
Examples of countries with competitive industries include Italy (footwear), Switzerland (pharmaceuticals), America (aircraft), and Japan (automobiles).
Competitiveness refers to a nation's ability to excel in a specific industry, measured by productivity in a well-defined and coordinated area.
D'Cruz (1992) defines competitiveness as the ability of a firm to design, produce, and/or market superior products, considering price and non-price qualities.

National competitiveness is not determined by natural resources, labor, or currency value.
Instead, it is achieved through innovation, specialization, and productivity in specific industries.