...markets has re-emerged as an important policy issue, reflecting the broader public debate about the interrelated concerns of downward pressure on wages, increased job insecurity, and jobs moving from OECD countries to developing countries with lower wages. Two relatively recent phenomena are at play here. One is the accelerating participation in world trade of many developing and transition countries, particularly the large, vastly populated economies of China and India. These countries’ increased trade and foreign direct investment have, according to some estimates, contributed to a fourfold rise in the effective global labor force over the past two decades. The second phenomenon is that the nature of globalization is changing. Technological advances, and particularly sharp reductions in communication and coordination costs, have allowed the emergence of global supply chains that are increasingly fragmented geographically. To feed these supply chains, international trade is Increasingly in intermediate inputs rather than in final goods and services or commodities. Moreover, often these intermediate inputs are business services that were previously nontradable but are now, with technological advances, tradable. This type of international trade, whether in services or other intermediate inputs, is referred to as offshoring. Here too China and India have been key players. What are the labor market implications of the current wave of globalization for globalized countries...
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...Cluster in Global Economy Mei-Hor Lo, Dechang Han Business School, Nankai University, Tianjin, China Email: matthew@gearex.com.tw Received November 2013 Abstract In this paper, we discuss the competitive paradigm between globalization and local development in the ceramic tile industrial cluster, based on the Porter’s theory in exploring the factors of the global competitiveness. We analysis the theory of cluster and competitive theory to compare two ceramic tile clusters in different contexts for tracing the mechanism and path constructed ceramic industry international competitiveness and strategy formation. In the study, we discuss what changes come into play addressing the radical changes in world markets, both for ceramic tiles and for surrounding ceramic tile supportive industries. These issues will be discussed with amount of literature reviews through the various perspectives to explore more comprehensive insight to China ceramic tile industry. Keywords Ceramic Tile; Industry Cluster; Agglomeration; Competitive Strategy; Resource Based View 1. Introduction As the world’s largest producer, consumer and exporter of ceramic tiles, the sheer scale of China’s volumes has been driving world growth in production, consumption and exports for over 15 years [1]. China’s advantages in globalization and international tile industrial transfer and especially the advantage of the low-cost labor force are reducing. Although China has apparent influence on the global tile volumes...
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...International competitiveness 2016 Assignment about National Competitiveness Based on World Economic Forum Report and Doing Business Report THE INDONESIA CASE MAIN SOURCES: * World Economic Forum, Global Competitiveness Report 2015-2016 * World Bank, Doing Business Report 2015-2016 * “The Economist” * “The Age” * “CNBC, World Economy” * “Indonesia-Investments” LORENZO TRABACCHI 4502720 INDONESIA: A CASE OF COMPETITIVENESS The World Economic Forum approach: Indonesia case Overview According to the WEF Global Competitiveness Report 2015-2016, Indonesia has an overall position of 37 out of 140 countries, with a score of 4.52 from 1 to 7 and a positive trend line which shows the evolution in percentile rank since 2007. Even the rank among 2014-2015 economies was 37, while the GCI 2014-2015 rank was 34 out of 144 economies. The graph here, shows that, the GDP per capita in Indonesia, since 1990 to 2014, had always grown in parallel with but more than the average of other countries in the same regional area (Emerging and Developing Asia). Since 2012-2013, Indonesia has always grown in terms of GCI, moving from the 50th to the 37th position with a score shifted from 4.4 to 4.5. Overall position of the country in the regional area Behind Singapore (2nd), the five largest members of the Association of Southeast Asian Nations (ASEAN)—namely Malaysia (18th, up two), Thailand (32nd, down one), Indonesia (37th, down four), the...
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...Clusters, Innovation, and Competitiveness: New Findings and Implications for Policy Professor Michael E. Porter Institute for Strategy and Competitiveness Harvard Business School Stockholm, Sweden 22 January 2008 This presentation draws on ideas from Professor Porter’s articles and books, in particular, The Competitive Advantage of Nations (The Free Press, 1990), “The Microeconomic Foundations of Economic Development,” (with C Ketels, M Delgado) in The Global Competitiveness Report 2006, (World Economic Forum, 2005), “Clusters and the New Competitive Agenda for Companies and Governments” in On Competition (Harvard Business School Press, 1998), and the Cluster Initiative Greenbook (Ivory Tower, 2004) by C Ketels, O Solvell, and G Lindqvist. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical, photocopying, recording, or otherwise - without the permission of the author. Additional information may be found at the website of the Institute for Strategy and Competitiveness, www.isc.hbs.edu The Changing Nature of International Competition • Falling restraints to trade and investment • Globalization of markets • Globalization of value chains • Shift from vertical integration to relying on outside suppliers, partners, and institutions • Increasing knowledge and skill intensity of competition • Nations and regions compete on becoming the most productive locations for business European...
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...한국항공경영학회지 제11권 제2호, 2013년 4월 다이아몬드 모델을 이용한 항공운송산업의 국가경쟁력 비교분석 연구 김효종* ․ 김은희** ․ 임성진*** A Comparative Study of National Competitiveness in Air Transport Industry using Diamond Model Hyojong Kim* ․ Eunhee Kim** ․ SeongJin Lim*** 국문초록 최근 항공운송시장을 둘러싼 제반 환경이 급속히 변화되면서, 항공자유화, 세계 각국의 항공사간 전략적 제휴 강화, 항공운송인프라 개선, 신공항 건설 및 허브화 추진, 저비용항공사의 등장 등 자국 의 항공 산업 경쟁력을 강화시키기 위한 협력과 경쟁구조가 매우 복잡하게 얽혀 있는 상황이다. 이에 본 논문은 우리나라 항공운송산업 경쟁력 향상 방안을 마련하기 위한 동북아시아의 한국, 중국, 일본 3개국 항공운송산업 경쟁력의 비교분석을 목적으로 한다. 포터의 다이아몬드 모델을 활용하여, 4개의 결정요인 및 29개의 측정지표를 개발하고 이를 바탕으로 동북아시아 3개국의 항공운송산업 경쟁력을 비교하였다. 분석의 주요 결과는 우리나라 항공운송산업의 경쟁력은 중국과 일본에 비해 낮은 수준으로, 특히 여객·화물운송의 작은 시장 규모와 관련·지원 산업에 대한 저조한 투자를 포함한 내수요인(Local demand condition)과 관련 및 지원 산업 요인(Related and supporting industries)에서 상대적으 로 낮은 수준의 경쟁력을 갖고 있음이 확인되었다. 반면, 생산주체인 항공사와 기반시설의 우수한 서 비스 수준 등으로 인해 생산요인(Factor endowment)과 높은 경쟁으로 인한 기업요인(Firm strategy, structure and rivalry)에서는 상대적으로 높은 수준을 나타내고 있다. * ** *** 전남대학교 경영전문대학원 MOT MBA 석사과정, 주저자, hyojong2w@gmail.com 전남대학교 경영대학 경영학부 교수, 교신저자, eheekim@chonnam.ac.kr 전남대학교 경영전문대학원 MOT MBA 석사과정, 공동저자, sjlim@sjsi.kr 한국항공경영학회지 ▪ 제11권 제2호 43 다이아몬드 모델을 이용한 항공운송산업의 국가경쟁력 비교분석 연구 주 제 어 : 항공운송산업, 국가경쟁력, 다이아몬드 모델, 동북아시아 ABSTRACT The purpose of this study is to compare South Korea with Japan and China in terms of National Competitiveness in Air Transport Industry for solutions for improving competitiveness. By using Diamond model, four determinants and 29 measurement indicators are developed. With those, the...
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...2.1: Country/Economy Profiles Mexico Key indicators, 2010 Population (millions)...............................................110.6 GDP (US$ billions)................................................1,039.1 GDP per capita (US$) .............................................9,566 GDP (PPP) as share (%) of world total..................2.09 GDP (PPP) per capita (int’l $), 1985–2010 15,000 12,000 9,000 6,000 3,000 Mexico Latin America and the Caribbean 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Global Competitiveness Index Rank (out of 142) Score (1–7) Stage of development 1 Factor driven Transition 1–2 GCI 2011–2012 ........................................................ 58......4.3 GCI 2010–2011 (out of 139)..................................................66........ 4.2 GCI 2009–2010 (out of 133)..................................................60........ 4.2 Basic requirements (38.6%)...............................................67........ 4.6 Institutions...........................................................................103........ 3.4 Infrastructure........................................................................66........ 4.0 Macroeconomic environment ...........................................39........ 5.2 Health and primary education...........................................69........ 5.7 2 Efficiency driven Transition 2–3 3 Innovation driven Institutions...
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...Total Quality Jennifer Schilling-Shaw University of Phoenix Student MGT/449 February 11, 2012 Jennifer Schilling-Shaw University of Phoenix Student MGT/449 February 11, 2012 Elements and Future Elements and Future Quality? Quality involves meeting or exceeding the customer’s desires or expectations and can form from products, services, people, processes, and surroundings (Goetsch & Davis, 2010). Most will judge the quality of services, people who provide the services, response time, price, environment, and overall satisfaction. Many different individuals have brought useful information to form total quality including Deming, Juran, and Crosby. Today all elements from total quality management are useful to help the organization meet the customer expectations and employee satisfaction. Total quality is about continuous improvement of the quality of services, products, processes, people and the environment (Goetsch & Davis, 2010). Total quality has 11 critical elements that helps grasp total quality within the whole organization. First it is important for an organization to have a strategic base that includes a vision, mission, broad objectives, and actions that will accomplish the broad objectives. Customer focus also is important which looks to satisfy both the internal customers work together within the organization surrounding the quality of product or services and external customers value the level of quality of the delivered products or...
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...APPLICATION OF CAGE DISTANCE FRAMEWORK - AN ANALYSIS OF KENYA AND RUSSIA SUBMITTED BY: YULIA BEREZINA SUBMITTED TO PROF. DANIELE CERRATO MATHIAS KOSKE DAVIDE NICHETTI VANESSA ZERRATE 11TH FEB. 2015 1 Foreign investment can be particularly challenging. In order get it right, the use of tools and evaluations is critical. In this document, based on the CAGE framework, we analyze distances between Russia and Kenya, and assess how they impact business establishment and operations in the latter. One of the most important things to take into account is the culture. We noticed that the two countries have very distinct and diverse cultural dimensions. They do not have a common language i.e. Russia has Russian as it official language while Kenya has English and Swahili, or have any shared ethnicity despite Russia having 185 and Kenya 42 ethnic groups. Religious disparities are also evident in these two economies. The Russians are largely unbelievers with the Russian Orthodox being the dominant religion whereas Kenyans are largely Christians. Despite these differences, the Muslim population in both countries is significantly represented but their marginalization makes them insignificant on an investment front. Finally, the social norms and values in both countries are quite similar, with the similar concepts of family, societal upbringing and gender roles. When evaluating both countries at the administrative level we encounter that they do not share a...
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...1. Did Eli Lilly pursue the right strategy (i.e., should it have used a joint venture) to enter the Indian market? Why or why not? You should refer to Chapter 6 of the notes for guidance. With the upward trend of globalization, cross-border commercialization has become inherent in business strategies pursuing not only improved competitiveness but to avoid market share erosion. Expanding to new markets, reducing friction with socio-cultural and legal barriers, reduce capital costs, securing raw materials and implementing economies of scale are just a few motivations which to look abroad for and consider the intricacies of operating in another country. Changes in India’s economic policies from an import substitution to an export-driven one, was the legal foundation that allowed Eli Lilly to pursue its interest to market its drugs in India, where it already had relationships with local manufacturers to produce human or animal insulin for the Soviet Union market, but did not for the Indian market (Bartlett & Beamish, 2014, p. 524) The opportunity presented by Ranbaxy, the second largest pharmaceutical company in India, to supply certain active ingredients or intermediate products to formulate and complete Lilly’s, and for the Joint Venture (JV) to sell and distribute those products, was the perfect opportunity to enter a “new” market while sharing the costs and risks with a well-known and respected partner. With the then existing market conditions (Sales turnover caps, mandatory...
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...integration to the benefit of its four Member States [1]. The four EFTA States are world leaders in several sectors that is vital to the global economy are Liechtenstein, Switzerland, Iceland, and Norway. Liechtenstein, despite its small size and limited resources, is highly industrialized and specialized in capital-intensive and R&D driven technology and products. The Swiss economy is based on high quality products that are competitive in the world markets. Switzerland is a world leader in pharmaceuticals, biotechnology, machinery, watchmaking, banking and insurance. Iceland’s economy benefits from renewable natural resources, in particular rich fishing grounds and hydro and geothermal power. Whilst still relying heavily on fishing and fish processing, the Icelandic economy has increasingly diversified into other industries and services. Norway is abundant in natural resources also contribute significantly to economic strength. Key activities relate to petroleum exploration and production, hydroelectric power and fisheries. Important services sectors include maritime transport, telecommunication and energy-related services [2]. Knowing the highlights of EFTA States, the following discussions and analyses will serve as your guide and basis in doing business with them. This is to discuss how the industry and the company be affected by the various global environment: Economic, Cultural-Social, PoliticalLegal and Financial. I. Economic Environment The Washington, D.C. complies a survey...
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...Switzerland’s which seems to fit pretty well within the global marketplace. Switzerland in the postmodern economy is known for certain export commodities like watches, chocolate and cheese, but statistics show that mechanical engineering and chemicals account for over half the Swiss revenues(1). It's highly qualified labor force (2) performing extremely skilled work in areas like biotechnology and pharmaceuticals. Despite a lack of natural resources, Switzerland tops to the report’s Global Competitiveness Index (GCI) (3) for the sixth year running. It performs well across many of the measures being assessed and ranks in the top 10 of eight key pillars. Switzerland’s top-notch academic institutions, high spending on R&D, and strong cooperation between the academic and business worlds contribute to making it a top innovator. (4) With a sense of order and stability Swiss economy's future is likely to be wrinkle-free with a stable and prosperous economy and a steely competitive spirit in manufacturing, services and tourism. (1) Switzerland in figures 2015/2016 , UBS report revenues http://www.amcham.ch/members_interests/downloads/150910_UBS_switzerland_in_figures.pdf (2) Human Capital Index 2013, World Economic Forum (http://www3.weforum.org/docs/WEF_HumanCapitalReport_2013.pdf ). (3) Global Competitiveness Index (GCI) , World Economic Forum , http://reports.weforum.org/global-competitiveness-report-2014-2015/rankings/ (4) Global innovation Index 2015...
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...Bolaji Olawoyin The word count for this essay is 1637 words including references. This figure excludes the cover page The word count for this essay is 1637 words including references. This figure excludes the cover page COMPETITIVENESS BSM018 This essay will discuss competitiveness of countries and account for a competitiveness indicator the United States (US), a member of the Organization of Economic Cooperation Countries (OECD) performs strongly in. It will also look at two competitiveness indicators where US underperforms and suggests ways in which such indicators could be improved. In addition to this, it will consider to what extent international practices match economic theories. First, the term competitiveness, and various methods used to measure it will be discussed. The second section will examine one competitiveness indicator in which the US excels. Two competitiveness indicators in which the US underperforms will be explored in the third section, and in particular, ways in which these indicators could be improved. Finally, the extent to which current practices match theories will be discussed. There is no accepted definition for the term “national competitiveness and it has become a much-debated concept. Clark and Tracey (2004) argued that the definition of competitiveness is one of the many unresolved debates posing significant challenges to contemporary academic inquiry and policy-making in the field of globalization and economic integration. Equally...
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...higher return. However, resulted from the studies segment, there is not an exact theory or study can be regarded as guidelines for these internationalizing firms. Overall, Michael Porter’s theory on national completive advantage is a better theory to be adopted by the international firms which want to select a better country for new entry. The dominance of Porter’s theory are its comprehensiveness, the dynamic Diamond theoretical system and analysis form both inductive and deductive sides. Meanwhile, it is at a disadvantage in its assumption. Thus, this essay will explore both sides of Porter’s theory. Porter's model includes four key elements. The Diamond model is depicted as figure 1, where the four forces jointly constitute a firm's global competitiveness in a given industry ( Porter,1990) Source: Porter (1990) The Competitive Advantage of Nations. The first element of the model is known as factor endowments, which is the centre of the Heckscher-Ohlin theory (Hill, 2013).Porter subdivided factors into basic factors (e.g. natural resources and location) and advance ones (e.g. technology infrastructure and skilled labor). Although the limited basic factors can cause an initial disadvantage, more advanced factor conditions in the home market will positively...
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...foreign immigrants with these specialized skills allows these Facebook, Google, etc. to continue their innovation and growth. The tech titans of Silicon Valley are growing at such a rapid pace, the domestic job market is unable to catch up. According to Brad Smith, Microsoft’s Chief Counselor, the economy produces 120,000 new jobs per year that require STEM (Science, Technology, Engineer, & Math) skills, but colleges are only producing 40,000 STEM graduates a year.* The shortage could cause economic slowdown for these companies. The H-1B program is there to fill in the gaps. By increasing the H-1B cap, America will be attracting the best and brightest. Innovative immigrants have always been vital to America’s growth, job creation, and global competitiveness. Foreign immigrants have founded more than half of Silicon Valley start-ups creating over 450,000 jobs and generating over $52 billion in revenue. Not only...
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...Part A 1) The first key learning point that I found to be particularly interesting and valuable was “How to start a business”. I found this point to be very interesting for starting a business has and continues to be a dream of mine. Within this category were sub- categories such as: business startup strategy, the right business for you, knowing your industry before you start your business, and estimating realistic startup cost. Although all very intriguing, I found the category on business startup strategies to be the most important for it gave the basics on how to start up a business, something that I didn’t know before The second key learning point that I found to be very interesting was where to start and what to do when “Buying a business”. I found this to be very interesting because if I can’t start a business, buying one would be the next best thing. Categories within this learning point included planning for purchasing a business, questions to ask when buying a business, knowing what you’re getting, and how to figure out what a business is worth. The last key learning point that I found to be very interesting while browsing the website was possibly more important than the first two learning points, “How to write a business plan”. Through the links in this category including: a standard business plan outline, different types of plans for businesses, what a business plan is, what makes a good plan, mistakes that can be made, a simpler plan for starting up a business and...
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