Thursday, March 13, 2014
The Global Economy From An Industry Perspective
This is an important article. It shifts our focus away from the competitiveness of national economies by looking at aggregate national data. We live in a global economy and large corporations are major actors in the global economy. Each of these corporations competes within an industry that has no national boundaries, but their competitiveness is related to conditions that exist in nation states. This study makes an effort to determine national competitiveness within specific industrial sectors. It also shows how the decision making behavior of corporations is determined by the industry in which they compete. Economists tend to view the firm as a homogenous entity without attempting to determine how those decisions are affected by the industrial sector to which they belong.