Global Competitiveness Essays -- Economics Business Essays

Global CompetitivenessAs the world becomes a smaller place, economies are shifting away from national economies to planetary economies. Robert Reich, Ira Magaziner, and Michael Porter each offer a different view of how a come with remains competitive in this global economy. Reich stresses the difference among American-owned corporations and American competitiveness. Magaziner highlights the growing need of innovation and the avoidance of national complacency. Porter focuses on his diamond of national competitiveness. While Whirlpool is an American owned comp whatsoeverthe companys headquarters and upper management all operate out of Americathe majority of the companys factories and production lies overseas in South America and Asia. Similarly, while Toyota is a Japanese owned company, it has increasingly manufactured its cars within US borders. Whirlpool is an American company but does non benefit American competitiveness. Reich maintains that foreign-owned businesses tha t benefit national competitiveness most are those that commit their engine of competitiveness to the host country. Whirlpool may be American run, but Toyotas factories in America create American jobs and train an American workforce, both commodities in national competitiveness. Reich further emphasizes the importance of a hot work force A nations most important competitive asset is the skills and learning of its work forceandNational policies should reward any global corporation that invests in the American work force. Stressing the skilled work force, as Magaziner has noticed, is not just an American necessity.Magaziner gives two examples of countries who take national insolence in training the work force Korea and Singapore. Bo... ...ompanies cannot compete, Tonelson gives two credible reasons for trade barriers. First, infant industries will have a chance to develop and one sidereal day be able to compete on a global arena. Second, hurting industries will have a chanc e to revamp their productions, regain efficiency and in one case again compete with the foreign product. On the other hand, Krugman believes that most nations use trade deficit and international competitiveness as a political stratagem to impose trade barriers. Each countrys economy depends on the population within the country, not on what other countries are doing. Nations should thus not impose any trade barriers so that the foreign competition could both stimulate and replace inefficient companies. Meanwhile, nations should upgrade their workforce to efficiently produce goods that ship to other countries, creating a mutually beneficial cycle.