This project has been funded with support from the European Commission (226388-cp-1-2005-1-de-comenius-c21). This publication reflects the views only of the authors

2.2.1.3. Production and Competitiveness

In recent years, global economy transformed with the elimination of obstacles against floes of goods, services, capital and labor and with the acceleration of technologic and scientific development. While the decreases in transportation and communication lowered the importance of location and promote enterprises to move their activities to low-cost locations, technologic developments create new business opportunities. This makes governments more sensitive in creating more business friendly environments and enhancing national competitiveness.
Table 6: Global Competitiveness Indices

Rank of Country	2005	2006	2007 / 2008
Germany	6	8	5
Czech Republic	29	29	33
Lithuania	34	40	38
Turkey	71	59	53
Singapore	5	5	7
Korea	19	24	11
China	48	54	34

Source: WEF, 2007 and 2006.
International competitiveness is a concept that is related to marketing. If countries compete in marketing their products, then production bears a sense. If the goods and services that the country produces can not compete, the country’s production would have no-sense and she would prefer importation instead of domestic production. National competitiveness is measured by the “Global Competitiveness Index” of the World Economic Forum (WEF).