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


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internationalization-and-globalization-theory

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).

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