International competitiveness
- International competitiveness implies the relative cheaper
availability of goods and services in international market. In
other words, production of quality goods and services at relatively
lower cost refers to the international competitiveness. It bids up
the demand for goods and services of country in international
market.
Concept application to a firm, an industry, and a
nation
- A firm can witness rise in demand for its goods and services if
its products are internationally competitive. Thus, it results into
rise in profits of firms.
- Further, better performance by the firms leads to the increase
in competitiveness of industry. Industry is aggregation of
firms.
- Furthermore, if industries perform good in international
market, it leads to the rise in export competitiveness of a nation
thereby causing rise in export earnings.