Download Lecture Template - Vladivostok State University of

Chair of Global Economy & Foreign Affairs
Olga V. Korneiko
Phd, Senior Lecturer
Course :The Competitiveness of national
economies
Lecture 1: Introduction. Framework of
Competitiveness
VSUES
You are highly encouraged to take
notes during the lecture!
The questions:
 Why do nations compete?
 What kind of problems do national economies have to
resolve to improve their international
Competitiveness?
 Do competitive firms come from competitive nations ?
 How do we measure Competitiveness?
 Are there any differences between firm
Competitiveness and national Competitiveness?
 What determines Competitiveness of nations today?
And what will determine it in the future?
The questions for you:
What do you know
about Competitiveness?
What do you think it
means?
What famous names
come to your mind when
you hear the term
Competitiveness?
What do you mean by
Competitiveness?
Competitiveness is
still one of the most
misunderstood
concepts.
1983 -1987
The term Competitiveness
appeared more than 5700 times.
Competitiveness
Competitiveness
on macroeconomic level
1) Competitiveness as productivity;
2) Competitiveness as capacity to create
well-being;
3) Competitiveness as ability to sell on
external markets.
Competitiveness
on macroeconomic level
1) Competitiveness as productivity;
2) Competitiveness as capacity to create
well-being;
3) Competitiveness as ability to sell on
external markets.
Michael Porter and World Economic Forum:
• The national Competitiveness as a set of
factors,
policies
and
institutions
that
determine the level of the productivity of a
country.
United States
•
•
•
•
Population:
313,232,044 (July 2011 est.)
GDP per capita: $ 48,112 (2012)
GDP: $15,290,000,000,000
Number of Billionaires: 442
Rankings of National Economic
Competitiveness
• Rank 2 from the International Institute for
Management Development (2012)
• Rank 7 from the World Economic Forum (20122013)
Why is the US competitive?
Structural features
US companies are highly
sophisticated and
innovative
Excellent university
system
Flexible labor market
Largest sheer size of its
domestic economy in the
world
Competitiveness
on macroeconomic level
1) Competitiveness as productivity;
2) Competitiveness as capacity to create
well-being;
3) Competitiveness as ability to sell on
external markets.
European Competitiveness Reports
(European Commission):
• Competitiveness as high and rising
standards of living of a nation or a
group of nations with the lowest
possible level of involuntary
unemployment, on a sustainable basis.
Competitiveness
money?
Most people think
that rich countries are
competitive and poor
countries aren’t.
Poorest Countries in the World
Countries
GDP per capita
1.
Congo
$400
2
Liberia
$500
3
Zimbabwe
$500
4
Burundi
$600
5
6
Somalia
Eritrea
$600
$700
7
Central African Republic
$800
8
Niger
$800
9 Madagascar
10 Malawi
$900
$900
Richest Countries in the World
Countries
GDP
1.
United States
$15,290,000,000,000
2
China
$11,440,000,000,000
3
India
$4,515,000,000,000
4
Japan
$4,497,000,000,000
5
6
Germany
Russia
$3,139,000,000,000
$2,414,000,000,000
7
Brazil
$2,324,000,000,000
8
United Kingdom
$2,290,000,000,000
9 France
10 Italy
$2,246,000,000,000
$1,871,000,000,000
Countries with the Most Billionaires
Countries
Number of Billionaires
1.
United States
422
2
China
66
3
Russia
65
4
Germany
57
5
6
India
United Kingdom
52
30
7
Turkey
28
8
Hong Kong
25
9 Canada
10 Japan
24
22
Brunei
Capital: Bandar Seri Begawan
Population: 408,786
GDP per capita: $50,000
GDP: 21240000000.000
Rank 1 in terms of Macroeconomic environment
Rank 28 from the World Economic Forum
Saudi Arabia
Capital: Riyadh
Population: 26,534,504
GDP per capita: $24,500
GDP: 691500000000.000
Rank 18 from the World Economic Forum
Competitiveness
on macroeconomic level
1) Competitiveness as productivity;
2) Competitiveness as capacity to create
well-being;
3) Competitiveness as ability to sell on
external markets.
• Competitiveness is a country’s share on
the world markets.
Country's share of arms on the world market :
OPEC -Organization of the Petroleum
Exporting Countries
• The countries of OPEC had a high positive
trade balance in the 1970s, though they were
not highly economically developed .
Russia is the world leader on export
• oil products, natural gas, nitric fertilizers,
cast iron, steel semi-finished products,
nickel, aluminum, the round wood — the
1st place in the world on each of
goods;
• oil, arms, the timber, the mixed fertilizers,
ammonia — the 2nd place;
• coal, newsprint, synthetic rubber, potash
fertilizers — the 3rd place
Russia
Capital: Moscow
Population: 142,517,670
GDP per capita: $17,000
GDP: 2414000000000.000
Rank 69 from the World Economic Forum
China Racing Ahead of U.S. in the Drive to
Go Solar
Paul Krugman is an American
economist. Nobel Memorial Prize in
Economics (2008)
Krugman sees the
Competitiveness of
the national economy
as a dangerous
obsession
Competitiveness
on microeconomic level
1. States and companies should be viewed
equally .
2. The productivity of an economy is the
sum of the productivity of firms in the
economy.
3. You can't have a competitive economy
unless firms are competitive.
How Native Fijian People started
Fishing Business
Operating expenses include:
vehicle expenses (fuel, oil for boat)
license fees
maintenance and repairs (fishing gear)
crew salary
supplies
utilities, such as telephone
insurance
property taxes
 etc
Fiji
Capital: Suva (on Viti Levu)
Population: 890,057
GDP per capita: $4,700
GDP: 4186000000 (2012)
3818121194 (2011)
Competitiveness is the degree to which a
nation can, under free and fair market
conditions, produce goods and services that
meet the test of international markets while
maintaining or expanding the real incomes of
its citizens.
•конкурентоспособность определяется тем,
насколько нация может в условиях свободной и
честной конкуренции производить товары и
услуги, которые отвечают запросам
международных рынков, одновременно
сохраняя на прежнем уровне или увеличивая
реальные доходы своих граждан.
TODAY IS THE FIRST DAY OF OUR COURSE
How do you feel?
Excited and confident?
Or maybe a little confused?
If you think you might have problems, don’t
worry.
We’ll try to resolve these problems together
Now I’d like to hear your FEEDBACK.
Write down a short feedback about the
lecture
Send me an e-mail at
[email protected]
THANK YOU FOR YOUR ATTENTION
[email protected]
+7- (423)-240-4193