4.2.5 Global Competitiveness

• What is global competitiveness defined as?

  Ability to compete internationally
• Productivity is measured by total revenue divided by total costs
• Innovation involves developing new products or processes for a competitive advantage.
• Match the component of global competitiveness with its description:

  Productivity ↔️ Efficiency of converting inputs to outputs

  Innovation ↔️ Developing new products or processes

  Cost Efficiency ↔️ Minimizing costs to maximize profit

  Market Access ↔️ Ease of selling in foreign markets
• Larger production scales lead to lower average costs
• Lower labor costs in some countries can reduce production expenses.
• How do exchange rates affect global competitiveness?

  Influence export and import costs
• Tariffs and trade agreements are examples of political factors influencing global competitiveness.
• A stable political environment encourages foreign investment.
• What role does technological innovation play in global competitiveness?

  Enhances competitive advantages
• The availability of skilled labor enhances productivity and product quality.
• Cultural compatibility with local customs can foster trust in international business relationships.
• Which company is cited as an example of a successful global competitor?

  Toyota
• Match the economic factor with its impact on global competitiveness:

  Economies of Scale ↔️ Lowers average costs

  Labor Costs ↔️ Affects production expenses

  Exchange Rates ↔️ Influences import and export costs

  Inflation Rates ↔️ Reduces price competitiveness
• Trade policies such as tariffs and trade agreements can facilitate or hinder market access.
• Political stability in a country attracts foreign investment.
• What effect do government regulations have on global competitiveness?

  Affect compliance costs
• Advanced technological infrastructure supports efficient operations and communication.
• Research and development investment drives innovation and productivity.
• Why is understanding consumer preferences important for global competitiveness?

  Influences product acceptance
• To enhance global competitiveness, businesses can employ strategies such as innovation, cost efficiency, and market access.
• Match the global competitiveness strategy with its example:

  Innovation ↔️ Developing new products or processes

  Cost Efficiency ↔️ Minimizing expenses to increase profit

  Market Access ↔️ Improving ease of entering foreign markets
• What is one strategy businesses can use to enhance global competitiveness?

  Innovation
• Cost efficiency involves minimizing costs to maximize profit margins
• Improving market access involves increasing the ease of selling in foreign markets.
• Match the strategy with its description:

  Innovation ↔️ Develop new products or processes

  Cost Efficiency ↔️ Reduce production costs

  Market Access ↔️ Enhance market entry and sales
• What is an example of Apple's innovation strategy?

  New iPhone models
• Outsourcing to lower-wage countries is an example of cost efficiency
• Forming strategic partnerships is a way to improve market access.
• What does global competitiveness significantly influence for businesses?

  Business strategies
• Increased competition in global markets drives companies to innovate
• Exchange rate volatility is a challenge businesses face in global markets.
• How did Toyota enhance global competitiveness?

  Investing in hybrid technology
• Productivity can be expressed as \text{Productivity} = \frac{TR}{TC}</latex>, where TR stands for total revenue