Critical Thinking Exercise # 1 Competitiveness in the Global Market First of all
Critical Thinking Exercise # 1
Competitiveness in the Global Market
First of all, it is important to start this subject by stating that the key to competitiveness in the global marketplace is Quality (Goetsch, D. L & Davis, S.B). According to the Business Dictionary, Competitiveness is defined as the “ability of a firm or a nation to offer products and services that meet the quality standards of the local and world markets at a price that are competitive and provide adequate returns on the resources employed or consumed in producing them”. On the other hand, the quality of life is defined as “a term used to measure well-being, while well-being describes how well people feel about their environment and collectively these feelings can be thought of as quality of life”. Now it is important to mention that quality of life indicators include, for example, housing, education, employment and household finances (Natural resources Canada).
The Impact of competitiveness on quality of life in America
It is really important for any country’s business to be able to compete globally, when they can’t, jobs are lost and the quality of life in that country declines correspondingly (Goetsch, D. L & Davis, S. B, 2010). In the market environment, competition plays a very important factor in improving the quality of life in most societies. This competitiveness brings benefits related to improving and developing the company’s products and goods. Is well known that if a company’s fails to produce quality merchandises, then is most likely that the business will lead closure. So, through competition many companies can get a chance of a large market share while meantime customer or consumers benefit from the improved quality commodities. In our days we are leaving in a consumer society where the demand and supply plays an important role in the global market that at the end it will impact the quality of life of the people in the nation.
According to the latest edition of the Global Competitiveness Report, publicized that with the annual ranking of 137 countries U.S moved up from the third place to the second place just behind Switzerland (Chicago Tribute, 2017) all of this happened from United States performance of efficiency, innovation and sophistication Factors. The Nation’s ability to compete in the global marketplace has a direct attitude on the quality of life of its citizens, because this ability to compete will be translated into the ability to do better job performance and producing quality products. The key is that the nation and the people within the organization focus on their policies, system and resources to find the way on continuously improvements both in quality and competitiveness. The global competitiveness of US in various sectors for example health, industry growth, attraction for foreign investment, education, politics, legal, natural resources, economic resources, will impact in the creation of Jobs and wealth, the growth of financial markets and definitely will affect the standard quality of life for people living in America. The outstanding fact is that a single nation cannot succeed and grow in all industrial sectors globally. Competitive markets allow a nation’s resources to be used to best effect in the production of goods and services. Competition gives firms continuing incentives to make their production and distribution more efficient, to adopt better technology, and to innovate. These sources of productivity improvement lead to growth and poverty reduction.
Many developing countries now prioritize growth in their national poverty reduction strategies, because effective competition is a driver of productivity, competition policy should be an essential component of any pro-poor growth strategy. Significantly, competition facilitates greater equality of opportunity by breaking down the barriers to fair competition that often help to protect incumbent elites.
List of ways competitiveness can affect quality of life.
At each successive level of competition, the quality of the competitors increased. In business, the competition is now moved from local, regional or national level to international level, which is making it tougher day by day; and now only those companies who are able to produce world-class quality can compete at international level. Therefore, it is extremely important for a country’s business to be able to compete globally because when they can’t, jobs are lost and the quality of life in that country decline correspondingly (Goetsch, D. L & Davies, S.B, 2010).
There are metrics and indicators to evaluate global competitiveness. The world economic forum’s global competitive index covers 142 economies representing 99% of Gross Domestic Product (GDP). A country’s GDP is an estimate of the total value of goods and services they produce.
following factors that inhibit competitiveness:
Business/Government related factors, which involves: emphasis on short-term profits fed by fear of unfriendly takeover attempts and pressure from lenders or shareholders; excessive medical costs; excessive costs of liability inflated by lawyers working on contingency fees. In order to overcome these business-related inhibitors, it requires business and government to work together in a positive, constructive partnership to enact policies that will reduce the non-value-added costs to a minimum.
Family-related factors: Human resources are critical part of the competitive equation. The more knowledgeable, skilled, motivated, and able-to-learn members, the better the labor pool will be. Family background plays an important role in basic education of the kids. The countries with strong family values are found to be better in educating their kids, hence producing knowledgeable and smart workers.
Education related factors: The quality of a country’s education system is a major determinant of the quality of its labor pool. The higher the quality of the labor pool, the higher the quality of entry-level employees.
The components for competitiveness are:
Investment in R;D
Technology innovation and creativity
Education Reform and Investment
Business Dictionary. www.businessdictionary.com/definition/competitiveness.html.
Goetsch, D. L ; Davis, S. B, (2010). Quality management for organizational excellence: Introduction to total quality (6th edition.). Upper Saddle River, New Jersey: Prentice Hall.
Natural Resources Canada. http://atlas.nrcan.gc.ca/site/english/maps/peopleandsociety/QOL