Answer to Question #50197 in Macroeconomics for Neha

Question

What is meant by international competitiveness. how does the concept apply on the firm, an industry and a nation.

Answer 1

What is meant by international competitiveness. how does the concept apply on the firm, an industry and a nation.
Solution
International competitiveness of a nation is the degree to which a country can, under free and fair market conditions, meet the test of international markets, while simultaneously maintaining and expanding the real incomes of its citizens.
A nation’s competitiveness depends primarily on keeping productivity growth rates equal to or greater than those of its major competitors.
Productivity growth rate is directly related to a nation’s rate of investment on innovation International competitiveness of an industry is a collective ability of firms in that sector to compete on the international market.
International competitiveness of the firm is an ability of the concrete firm to compete on the international market.