THEORIES OF INTERNATIONAL TRADE AND INVESTMENT
Table of Contents
The way of enhancing competitive advantages
Determining factors of national competitiveness
National industrial policies
Appendix: Increasing GDP rate of UK over time
The current study sheds light on the way of enhancing competitive advantages as well as gaining advance opportunities. Along with that, the study discusses determinants of national competitiveness. It demonstrates national industrial policies of UK. National competitiveness includes technological factors as well as communication system through online media and strong relationship with international trade partners based on which nation can be developed in a significant way.
With the aid of implementing creative ideas and bringing innovations into business process of different industries, competitive advantages such as large number of targeted customers can be gained. Along with that, innovation and creativity both are fully dependent upon education system as well as skills of people in a specific country. For an example, education system is being developed in UK, people are skilled and experienced in different fields such as analyzing market and manufacturing products as per demand of customers based on which UK is able to enhance targeted customers. As opined by Meihami & Meihami (2014), in order to enhance number of targeted customers and rate of earning profit, innovation and creativity into business process is required due to which hiring of skilled and experienced candidates are essential.
Productivity and technology:
For the purpose of gaining competitive advantages such as increasing brand recognition as well as popularity and higher earning profit, mass production is required. Due to which, technological changes into business process is utmost criteria. As per views of Saeidi et al. (2015), for the purpose of enhancing rate of production, technological changes such as use of automation system and robotics are most significant way. Based on accurate technological changes into production and operation department of different industries, demand of targeted customers can be fulfilled. This tends to gain competitive advantages such as large number of targeted customers and enhancing rate of profit (influenced by Vanpoucke et al. 2014).
Digital communication system and use of online media:
In case of improving business process and changing quality of products and price level, greater accessibility of digital communication system is required. As opined by Huang et al. (2015), digital communication system and reviewing online media on regular basis both are significant way of targeting large number of customers based on which industrial development can be possible. From the following point of view, it can be demonstrated that reviewing digital media and optimizing official website on regular basis both are significant way of improving business process based on which competitive advantages can be gained. As asserted by Albrecht et al. (2015), optimizing official website on regular basis is most significant way of gathering information regarding demand of customers related to quality of products and price level based on which business development can be possible.
Overall productivity of UK is comparatively higher than other developing countries due to having multicultural people and advance technological factors such as digital technology and automation system. As per views of Harzing & Giroud (2014), national productivity is dependent upon technological aspects such as online communication system and reviewing social media on regular basis. With the aid of online media and digital communication system, different industries of UK are able to maintain strong relationship with international and national trade partners (The Competitive Advantage of Nations, 2019). International and national trade partners assist UK companies by providing strategic solution regarding improvement into business process and technological improvements (Determining Factors of National Advantage, 2019).
Skills and experience of workers:
Based on skill and experience level of workers within a country, overall rate of production and production of accurate quality products as per demand of customers can be fulfilled. As per views of Ghattas et al. (2014), skill and experience of workers are dependent upon education system of a specific country which enables all workers to enhance own capacity and cope with modern market situation.
With enhancing rate of GDP, economic condition of a nation can be enhanced significantly. Along with that, GDP rate is dependent upon three significant factors such as overall productivity and number of targeted customers and sales per financial year. For an example, UK has already large number of multicultural people and strong education system due to which workers are skilled and experienced enough to produce accurate quality products as per intention of customers (Determining Factors of National Advantage, 2019). Thus, it allows enhancing overall GDP rate based on which economic condition of UK is increased significantly.
Productivity policy of UK indicates to maintain appropriate guidelines related to quality of ingredients into different products and price level so as to satisfy large number of customers. Along with that, the following policy of UK shows ethical path through which business process can be developed significantly (Refer to appendix).
By following guidelines of productivity policy, UK companies have enhanced growth rate and overall profit rate by 2.1% in 2018 as compared to companies of other developing countries (The Competitive Advantage of Nations, 2019).
Training and immigration policy
By following guidelines of training and immigration policy, different organizations of UK have adopted strategy regarding the way of enhancing workplace skill based on which significant development of business process can be possible. Along with that, training and immigration policy has shown strategic path through which rate of production and employee performance can be enhanced significantly. Due to following principles of the following policy, UK organizations have been able to enhance financial position and develop overall business framework. UK economic condition and overall GDP rate has been enhanced by 2.25% in 2018 due to which this policy is considered as successful one (Determining Factors of National Advantage, 2019).
Thus, it can be concluded that with the adoption of strategy regarding innovative ideas and technological changes into business process, number of targeted customers can be enhanced significantly. With changing technological aspects such as installing automation system and 3d technology as well as robotics, mass production can be maintained significantly.
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