Critical Thinking Exercise # 1
Competitiveness in the Global Market
First of all, it is important to start this subject by stating the key concept to competitiveness in the global marketplace is Quality. According to the Business Dictionary, Competitiveness is defined as ability of a firm, company or a nation to offer products and services that will meet or exceed the quality standards of the local or global markets at a price that are competitive and provide adequate returns on investment and resources while producing them. On the other hand, the quality of life is defined as “a term used to measure well-being, while well-being describes how well people feel about their environment and collectively these feelings can be thought of as quality of life”. Now it is important to mention that quality of life indicators include, for example, housing, education, employment and household finances (Natural resources Canada).
The Impact of competitiveness on quality of life in America
It is really important for any business to be able to compete globally, if they can’t, jobs can be lost and the quality of life can be jeopardized and declines correspondingly. In the market place competition plays a very important aspect in improving the quality of life in most societies. This competitiveness of the companies in the global markets is what will bring benefits related to improving and developing the company’s products. This is well known that if a company fails to produce quality merchandise, then most likely the business could possible fail or even close. So, through competition many companies can get a large market share, in the meantime customers or consumers will benefit from the improved quality of the products. In our days we are living in a consumer-friendly society where the supply and demand plays an important role in the global market place and at the end it will impact the quality of life.
According to the latest edition of the Global Competitiveness Report, publicized that with the annual ranking of 137 countries the U.S moved up from the third place to the second place just behind Switzerland (Chicago Tribute, 2017) all of this happened due to the United States performing with efficiency, innovation and sophisticated factors. The ability of the business to compete in the global marketplace has a direct effect on the quality of life of its workforce, because this ability to compete will be translated into the ability of increasing the job performance and producing more quality products. The key is that the business and it people within the organization to focus on their policies, system and resources to find the way to continuously improvement both in their quality and competitiveness. The global competitiveness of the US in various sectors for example are health, industries producing the attraction for foreign investment, education, politics, legal, natural resources and economic resources, this will impact the creation of jobs and wealth, plus the growth of financial markets and definitely will affect the standard quality of life for people living in America. The overall facts are that a single country cannot succeed and grow in every industrial sectors globally. Competitive markets allow for a nation’s resources to be used to best effect the production of goods and services. Competition gives firms continued incentives to make their production and distribution more efficient, to adopt better technology, and innovation. These sources of productivity improvements will lead to greater growth and a reduction of poverty.
Many developing countries now prioritize and focus on clear strategic plans that will reduce their nations poverty levels, because of this effective plan of competition it will drive their productivity and their competitive policies and in turn is an essential component of any growth strategy. Significantly, competition facilitates greater equality of opportunity by breaking down the barriers to fair competition that often help to protect incumbent industry leaders.
List of ways competitiveness can affect quality of life.
At each successive level of competition, the quality of the competitors increased. In business, the competition is now moved from local, regional or national level to international level mostly due to reduction of costs, which is making it tougher day by day for businesses and now only those companies who are able to produce world-class quality can compete at international level. Therefore, it is extremely important for a country’s business to be able to compete globally because when they can’t, jobs are lost and the quality of life in that country decline correspondingly (Goetsch, D. L ; Davies, S.B, 2010).
There are metrics and indicators to evaluate global competitiveness. The world economic forum’s global competitive index covers 142 economies representing 99% of Gross Domestic Product (GDP). A country’s GDP is an estimate of the total value of goods and services they produce. (Chicago Tribune, 2017)
The following are factors that inhibit competitiveness:
Business and Government related factors involves: the emphasis for short-term profits, takeover attempts and the pressure from lenders or their shareholders; medical costs, costs of liability inflated by attorneys working on retainer fees. In order to overcome these business-related issues, the business and government need to work together in a positive and constructive way to enact policies that will reduce the non-value-added costs to a minimum.
Family-related factors: Human resources play a very important part of the competitive factor. The more knowledgeable, motivated and skilled members the company has, the more efficient and better its workforce will be. A family’s background could play an important role for basic education of the kids. The countries with strong family values are found to be better in educating their kids, hence producing knowledgeable and smart workers.
Education related factors: The quality of a country’s education system is a major determinant of the quality of its labor force. The higher the quality of the labor pool, the higher the quality of their entry-level employees.
The components for competitiveness are:
Investment in R;D
Technology innovation and creativity
Education Reform and Investment
Business Dictionary. www.businessdictionary.com/definition/competitiveness.html.
Goetsch, D. L ; Davis, S. B, (2010). Quality management for organizational excellence: Introduction to total quality (6th edition.). Upper Saddle River, New Jersey: Prentice Hall.
Natural Resources Canada. http://atlas.nrcan.gc.ca/site/english/maps/peopleandsociety/QOL