global competitiveness essay

To be Globally Competitive, We Must be Globally Competent

Subscribe to the center for universal education bulletin, justin van fleet and justin van fleet former brookings expert, director - the education commission rebecca winthrop rebecca winthrop director - center for universal education , senior fellow - global economy and development.

September 29, 2010

This week, NBC News launched “ Education Nation ” in an attempt to engage the public in thoughtful dialogue about how to provide every American with an opportunity to have the “best education in the world.” The discussion focuses on many important aspects of the American education system, including dismal dropout rates, poor performances in reading and math, the role of technology and global competitiveness.

While basic skill development and workforce preparation skills are important in the American education system, a paradigm shift must take place recognizing that in order to be truly globally competitive, we must be globally competent. Educating young people to become global citizens will allow them to learn about the interdependence of the world’s systems, believe that solutions to global challenges are attainable, feel morally compelled to confront global injustices and take responsible action to promote a just, peaceful and sustainable world. While at first glance a focus on global citizenship may seem secondary in a system where basic literacy remains a challenge for many, these skills are vital. If we truly aspire to have a world-class education system in America, we must engage with the world. The challenges that face the world today—from global poverty and climate change to financial systems and conflict—require globally-minded solutions. Global competency skills are necessary so that young people can invent a future that appropriately addresses global challenges.

The Longview Foundation estimates that 10 state school systems have passed legislation in support of global knowledge and skills, and the Partnership for 21st Century Skills , an initiative involving the U.S. Department of Education and various private companies and foundations, includes global awareness as a major curricular theme. Yet according to Lisa Swayhoover, global education specialist at the National Education Association , the scale, long-term impact and connection to classroom practice is somewhat unclear. These advances come at a time when the Council of Chief State Schools Officers’ Common Core Standards , currently adopted by over 30 states, fail to mention any global competency skills.

The advent of technology and communication advancements have made global citizenship education a need rather than a luxury—and more feasible than ever before. Social entrepreneurs have developed models to integrate global citizenship education into formal and informal education opportunities for American youth. These initiatives, while developed at the individual level, are proven models that can be adopted and taken to scale. For example:

• Piloted in 2005 with a handful of students in New York City, the Global Citizen Corps program, an activity of Mercy Corps, has grown to develop 1,100 youth leaders and engage 24,000 young people around the world in eight countries. Students are able to use the internet, Web chats, and videoconferencing to have discussions, engage in dialogue and form friendships with peers from across the globe.
• The Global Citizen Year program is a cross-sector model that partners with high schools and colleges in the United States and NGOs around the world to create opportunities for emerging leaders to work as apprentices in Asia, Africa and Latin America in the year between high school and college. GCY has pledged to engage 1,000 young people in the program by 2015 to unleash a pipeline of emerging leaders to find innovative solutions to the global challenges of the 21st century.

Beyond formal programs, there are new opportunities emerging from online platforms that can augment a teacher’s innovation when it comes to implementing global citizenship education. YouTube, Skype, Facebook and Twitter allow individuals around the world to connect in ways never before possible. And American youth can take direct action using technology; for example, Kiva.org , an online direct micro-lending platform, allows individuals in developed countries to make direct microloans to entrepreneurs and students in developing countries. Creativity is the only barrier to the educational possibilities; yet, the curricular flexibility and mandate from the top must be present in order to support and value these educational innovations, not hinder them.

As we aim to reinvent America as the “Education Nation,” we must reinvent our notion of the necessary skills to succeed in the 21st century, which go beyond reading, writing and math to include global citizenship and competency. Then, American education will be “world class.”

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Good Example Of Essay On Global Competitiveness

Type of paper: Essay

Topic: Knowledge , World , Business , Management , Technology , Company , Skills , Environment

Published: 12/15/2021

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The world now is a global village. Different economies are trading with each and more, and more companies are joining the global scene (Griffin 46). So what does it take to remain competitive in the global scene? There are various factors that affect the competitiveness of a company in the global landscape. Some of the important factors shaping this newly created competitive environment include the technology and knowledge management The technological advances of the last few have helped enhance fast and quick communication within and outside firms. Communication technologies have contributed to improving coordination of firm activities especially multinational forms with a presence in different countries. Such a business setting requires fast and efficient technologies which have been made possible by the emergence of the internet and all the services that rely on its infrastructure such as social media (Griffin 197). Technology has been used to enhance brand awareness and reputation hence attracting new customers. Knowledge management creates an environment where employees can be innovative and creative. Companies have to continuously engage their research and development departments to come up with new tailor-made products for consumers as well as adapting to changes in consumer preferences. Knowledge management ensures that employees' skills, knowledge, and talent are identified and put into good use for the long-term growth of the company. With more and more collaboration taking place in the global economy employers can scout for talent and skills from different countries (Griffin 209). Scouting for talents locally increases the chances of success of a business in the region because they can now make use an individual’s knowledge of the locality in creating products and advertising campaigns that will address the needs of the potential customers.

Griffin, Ricky. Fundamentals of Management. Boston: South-Western College Publishers, 2015. Print.

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Competitiveness Essay Topic Ideas & Examples

1. introduction to global competitiveness.

Global competitiveness is a concept that refers to the ability of a country, company, or individual to compete effectively in the global marketplace. It encompasses various factors such as productivity, innovation, infrastructure, and economic policies that contribute to a nation's or organization's ability to produce and sell goods and services in a global context. The significance of global competitiveness lies in its impact on economic growth, job creation, and overall prosperity. Countries and businesses that are able to enhance their competitiveness often experience higher levels of productivity, greater innovation, and increased prosperity for their citizens or stakeholders. In this section, we will explore the definition and significance of global competitiveness, providing a foundational understanding of the concept and its implications for both developed and developing economies. By delving into the key factors that contribute to global competitiveness and its impact on the global economy, we will set the stage for the subsequent discussions on the role of technological innovation in shaping global competitiveness. In doing so, we will address the importance of understanding global competitiveness in today's interconnected economy and the ways in which technological innovation has become a critical driver of competitiveness on a global scale.

1.1. Definition and Significance

In the context of global competitiveness, technological innovation refers to the development and implementation of new technologies and processes that enable businesses and countries to gain a competitive edge in the global marketplace. This encompasses a wide range of activities, including the introduction of new products and services, the optimization of production processes, and the adoption of advanced digital technologies. The significance of technological innovation lies in its potential to drive economic growth, enhance productivity, and improve the overall standard of living. By embracing technological innovation, companies and countries can strengthen their competitive position, adapt to changing market dynamics, and capitalize on new opportunities for growth and expansion. Furthermore, technological innovation is a key driver of global competitiveness, as it enables businesses to differentiate themselves from competitors, boost efficiency, and meet evolving customer demands. In today's interconnected and rapidly changing world, the ability to innovate and adapt to technological advancements is crucial for maintaining a competitive advantage. Moreover, technological innovation plays a pivotal role in shaping international trade patterns and fostering economic development across borders. Embracing innovation not only benefits individual companies and industries, but also contributes to the overall competitiveness of nations in the global arena. Therefore, understanding the definition and significance of technological innovation is essential for comprehending its impact on global competitiveness and guiding strategic decision-making at the organizational and national levels.

2. The Role of Technological Innovation

Technological innovation plays a crucial role in driving global competitiveness, as it enables companies to create new products and services, streamline processes, and improve overall efficiency. In the historical perspective of technological innovation, we can observe how advancements in technology have contributed to significant shifts in global economic and industrial landscapes. The emergence of the steam engine, for example, revolutionized transportation and manufacturing, leading to the Industrial Revolution and the rise of modern industrial economies. Similarly, the development of the internet and digital technologies has transformed communication, commerce, and information dissemination, creating new opportunities for businesses to reach global markets and collaborate across borders. In today's fast-paced and interconnected world, the ability to adapt to technological innovations is essential for businesses to stay competitive and meet the evolving demands of consumers and markets. Therefore, understanding the historical context of technological innovation is crucial for predicting future trends and identifying opportunities for sustainable growth and success in the global marketplace.

2.1. Historical Perspective

The historical perspective of technological innovation provides valuable insights into the ways in which advancements in technology have driven global competitiveness. Throughout history, various technological innovations have revolutionized industries, economies, and societies, contributing to the rise and fall of nations and empires. From the invention of the steam engine during the Industrial Revolution to the development of the internet in the late 20th century, technological innovation has continually reshaped the global landscape. Furthermore, historical analysis reveals that nations and civilizations that have embraced and adapted to technological innovation have gained a competitive edge over those that have resisted or neglected it. The ability to harness and leverage technological advancements has been a key factor in determining the global competitiveness of nations and their economies. As we examine the historical perspective of technological innovation, it becomes evident that its impact on global competitiveness has been profound and far-reaching, shaping the course of human history and setting the stage for the future. In understanding the historical context of technological innovation, we can better appreciate its role in driving global competitiveness and anticipate its future implications.

3. Case Studies and Examples

In examining the impact of technological innovation on global competitiveness, it is essential to delve into specific case studies and examples that exemplify the intersection of innovation and success. One of the most prominent case studies to explore is the rise of Silicon Valley. This region in the United States has become synonymous with technological innovation, serving as the global epicenter for leading technology companies and startups alike. The success of Silicon Valley can be attributed to various factors, including a conducive ecosystem that fosters collaboration, access to capital, and a culture that embraces risk-taking and disruption. Through the example of Silicon Valley, it becomes evident how technological innovation has propelled global competitiveness by driving economic growth, creating high-value jobs, and shaping industries. Moreover, the case study of Silicon Valley demonstrates how a concentration of talent, resources, and a supportive regulatory environment can fuel innovation and strengthen a nation's competitive edge in the global economy. By analyzing the rise of Silicon Valley, we can gain valuable insights into the strategies and conditions that facilitate technological innovation and its profound impact on global competitiveness.

3.1. The Rise of Silicon Valley

The rise of Silicon Valley has been a significant factor in the impact of technological innovation on global competitiveness. Silicon Valley, located in the southern part of the San Francisco Bay Area in California, is renowned for being a major hub for technological development and innovation. The region has become synonymous with some of the world's most influential and successful technology companies, including Apple, Google, and Facebook, among many others. The success of Silicon Valley can be attributed to a combination of factors such as proximity to leading universities, access to venture capital, a culture of entrepreneurship, and a supportive ecosystem that encourages risk-taking and experimentation. The cluster of tech companies in Silicon Valley has created a network effect, leading to the exchange of ideas, talent, and resources, and driving continuous innovation. The impact of Silicon Valley on global competitiveness is seen in its ability to attract top talent from around the world, its role in shaping consumer behavior through cutting-edge products and services, and its influence on the global tech industry. As a result, the rise of Silicon Valley has not only transformed the local economy but has also had a profound impact on the global economy, setting new standards for technological advancement and competitiveness.

4. Challenges and Opportunities

Technological innovation brings about numerous challenges and opportunities for global competitiveness. One of the key challenges is navigating the ethical and social implications that arise from the adoption and use of new technologies. As companies and nations strive to stay ahead in the global marketplace, they must grapple with the potential impacts of their innovations on society and the environment. This includes considering issues such as data privacy, cybersecurity, and the displacement of workers due to automation. At the same time, these challenges present opportunities for businesses and governments to demonstrate ethical leadership and to develop innovative solutions that are socially responsible. Embracing these challenges can also lead to the creation of new markets and industries, with the potential for economic growth and job creation. Moreover, the increasing pace of technological change presents both challenges and opportunities for global competitiveness. Companies and countries must continuously adapt and evolve in order to stay relevant and competitive in the global market. This requires a willingness to invest in research and development, to embrace new technologies, and to foster a culture of innovation. Those who rise to these challenges stand to gain a competitive edge, while those who are slow to adapt may find themselves falling behind. Ultimately, successfully navigating the challenges and seizing the opportunities presented by technological innovation is critical for maintaining global competitiveness in the 21st century.

4.1. Ethical and Social Implications

The rapid pace of technological innovation has brought about significant ethical and social implications that cannot be ignored. One of the key ethical concerns is the potential for technology to exacerbate inequality. While it has the power to create opportunities and improve lives, there is also a risk that certain groups or individuals may be left behind. This could further widen the gap between the haves and have-nots, leading to social unrest and instability. Furthermore, the increasing reliance on technology raises important questions about privacy and data security. With the collection and storage of vast amounts of personal information, there is a heightened risk of privacy breaches and misuse of data. Issues surrounding cybersecurity and the ethical use of personal information have become paramount as technological advancements continue to shape the global landscape. Moreover, the impact of technological innovation on the workforce cannot be underestimated. While automation has the potential to streamline processes and increase efficiency, it also has the potential to displace jobs and disrupt livelihoods. The need for retraining and upskilling the workforce to adapt to the changing demands of the job market is a critical ethical and social consideration that must be addressed. In conclusion, the ethical and social implications of technological innovation are vast and multifaceted. It is crucial for policymakers, industry leaders, and society as a whole to navigate these challenges in a responsible and equitable manner, in order to ensure that the benefits of technological advancement are shared by all.

5. Conclusion

In conclusion, it is clear that technological innovation plays a crucial role in determining global competitiveness. Throughout this essay, we have explored the ways in which technological innovation impacts various aspects of global competitiveness, including economic growth, productivity, and market positioning. The key takeaways from this analysis indicate that countries and companies that invest in technological innovation are better positioned to compete in the global marketplace. Additionally, the future outlook suggests that the pace of technological innovation will continue to accelerate, creating both opportunities and challenges for global competitiveness. Furthermore, it is important to note that the impact of technological innovation on global competitiveness is not uniform across all industries and regions. Different sectors and countries may experience varying degrees of influence from technological advancements. Nevertheless, it is evident that embracing and harnessing technological innovation is essential for maintaining and improving global competitiveness. As we look towards the future, it will be critical for policymakers, businesses, and other stakeholders to adapt to the evolving technological landscape in order to effectively compete on a global scale. Ultimately, the ability to leverage technological innovation will continue to be a determining factor in global competitiveness.

5.1. Key Takeaways and Future Outlook

In conclusion, the impact of technological innovation on global competitiveness is multi-faceted and complex. Throughout this essay, we have examined the ways in which technological innovation has transformed industries, economies, and societies, leading to increased global competitiveness. We have also explored the challenges and opportunities that technological innovation presents, from the need for continuous adaptation and investment to the potential for widening global inequalities. Moving forward, it is clear that technological innovation will continue to be a driving force in global competitiveness. The rapid pace of technological advancement and the increasing interconnectedness of the global economy will require organizations and governments to prioritize research and development, digital infrastructure, and education. Additionally, ethical considerations surrounding the use of technology, as well as the impact on labor markets and employment, will need to be addressed to ensure that the benefits of technological innovation are equitably distributed. As we look to the future, it is essential for all stakeholders to collaborate and invest in technologies that not only enhance global competitiveness but also contribute to sustainable and inclusive growth. By fostering a conducive environment for innovation and knowledge-sharing, we can harness the full potential of technological advancements to drive global competitiveness and address pressing societal challenges.

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The Interplay of Technology and Trade: Transforming Global Economic Competitiveness

Introduction

Technology and trade are inextricably linked in today’s networked globe, influencing international Trade. This essay investigates the complex interrelationships between commerce and technology, looking at how developments in the field have transformed economic competitiveness, altered market dynamics, and changed trade practices. Technology advancements have radically changed how firms do business, from the introduction of the Internet to the emergence of digital platforms and automation (Sturgeon 2021). This essay seeks to clarify the changing relationship between commerce and technology and the ramifications for many stakeholders in different sectors and regions by analyzing significant trends, obstacles, and possibilities.

The Development of Trade and Technology

Historical background.

Commerce has consistently increased with the help of technological advancements. Long-distance transportation and navigation were made more accessible by the invention of the wheel, the compass, and shipbuilding methods, all of which significantly enhanced commerce between ancient cultures (Kelly et al., 2021). The 18th and 19th centuries Industrial Revolution marked a turning point in economic growth by bringing mass production and industrialization (Zeidan, 2021). Significantly increasing trade volumes, these innovations altered industrial processes. Innovations like the steam engine, automated looms, and railroads significantly lowered transport times and production costs. The basis of the global economy was laid during this time by the unparalleled growth of both local and international Trade. The influence of technology on trade growth and economic progress is considerable, as demonstrated by these historical advances.

The Digital Era

The late 20th and early 21st centuries saw the emergence of the Information Age, characterized by fast advancements in information and communication technologies (ICT). The Internet, digitalization, and mobile technologies have changed how firms operate and conduct business. The emergence of digital payment systems, global supply chains, and e-commerce platforms that facilitate quicker, more transparent, and practical trading is directly related to these technical advancements (Putrevu & Mertzanis, 2023). Big data analytics and cloud computing have further transformed corporate operations by enabling better consumer experiences and real-time decision-making. Furthermore, digital marketing and social media have created new channels for accessing international markets. These advances have streamed conventional trade procedures and produced new company prospects and models.

Utilizing Technology to Promote Trade

Greater efficiency and productivity.

Technological advancements significantly increase the productivity and capacity of industrial operations. Automation, robotics, and artificial intelligence (AI) are innovations that lower production costs while boosting productivity and enhancing product quality. Because of these developments, the worldwide market has become more competitive, propelling commerce growth. For instance, businesses may manufacture complex, high-quality products at lower costs because of new production techniques, which makes their products more appealing to consumers abroad (Putrevu & Mertzanis, 2023). By enabling accurate and scalable manufacturing, advanced technologies help businesses satisfy customer needs and stay competitive. Greater market reach and more worldwide trade prospects result from this greater competitiveness.

Reducing Barriers to Trade

Technology reduces costs and logistical challenges to cut trade barriers dramatically. Digital platforms provide global linkages between buyers and sellers, providing small and medium-sized businesses—which may otherwise find it challenging to penetrate international Trade—with access to overseas marketplaces. Additionally, blockchain technology improves transaction security and transparency, which reduces the possibility of fraud and fosters confidence between business partners (Meyer et al., 2023). Automated border and customs administration systems speed up the passage of products, cutting down on related expenses and delays. These technical technologies improve the efficiency and seamlessness of cross-border transactions by streamlining trade procedures.

Facilitating Global Supply Chains

Technological developments have had a profound impact on global supply networks. The Internet of Things (IoT) enables sophisticated logistics and tracking systems that give real-time data on commodity movement, improving transparency and control throughout the supply chain. Due to this technical visibility, firms can expedite their processes, cut down on delays, and quickly adapt to changes in the market. Inventory control and forecasting are further optimized by automation and AI-driven analytics (Meyer et al., 2023). The efficiency of these global supply networks is essential to international Trade because it ensures the dependable and timely cross-border delivery of commodities. Increased customer satisfaction and competitiveness in the global market are two benefits of improved supply chain efficiency and cost savings.

Trade’s Contribution to Technological Advancement

Obtaining new markets and resources.

Technology advances significantly due to Trade, which introduces companies to new markets and resources. Companies are incentivized to develop novel goods that cater to different client preferences and regulatory needs by having access to various markets. This exposure to many markets inspires innovative ideas and product development, promoting an innovative culture (Meyer et al., 2023). Furthermore, access to raw materials and intermediary commodities that might not be available locally is made possible by international commerce. Companies may experiment with new materials and procedures, improving their production capacities and maintaining their competitiveness in the global market, thanks to this access, which is crucial for innovation in manufacturing methods and technical breakthroughs.

Originality and Competition

International commerce exposes businesses to global competition, which greatly encourages innovation. Businesses spend much on research and development (R&D) to improve their goods and processes and stay competitive. Making this investment is essential to be competitive in a global market where customer preferences are changing, and technology is advancing quickly (Insee & Suttipun, 2023). This worldwide competition creates a competitive strain that propels technological advancement, resulting in the development of new technologies and the ongoing enhancement of preexisting ones. Businesses speed up innovation as they try to beat their international competitors. Therefore, the state of international commerce directly affects the competition among enterprises for technology, creating a climate in which success and survival depend on constant innovation.

The Role of Law and Governance in Technology and Trade

Trade policies and agreements.

Governments have a big say in how commerce and technology interact through agreements and legislation. Technology and innovation sharing is greatly aided by trade agreements like the Trans-Pacific Partnership (TPP) and the North American Free Trade Agreement (NAFTA), which reduce tariffs and promote collaboration (Insee & Suttipun, 2023). These agreements assist in removing obstacles that could otherwise prevent the interchange of technology developments by improving trade circumstances. Furthermore, protecting intellectual property (IP) requires rules vital to innovation. These laws support technological advancements that boost Trade and stimulate economic growth by upholding artists’ rights and guaranteeing the legal protection of their innovations. This structure of rules and agreements produces a stable and predictable environment, which promotes global Trade and technical cooperation.

Innovation and Industrial Policies

Government programs that support innovation and industrial growth greatly impact how technology and business interact. Subsidies, tax exemptions, and R&D grants all contribute to the advancement of technology by encouraging businesses to make innovative investments. Furthermore, new trade opportunities are produced by industrial policies supporting advancing cutting-edge technologies like biotechnology and renewable energy (Insee & Suttipun, 2023). Governments raise their countries’ competitiveness in the global market by fostering an atmosphere that encourages innovation. Strategic investments in workforce development, education, and research infrastructure further strengthen the innovation ecosystem, which promotes economic growth and trade expansion.

Trade-Technology Relationship: Opportunities and Difficulties

The digital divide and inequality.

The digital gap severely challenges the relationship between Trade and technology. Poor infrastructure and limited technological access sometimes cause developing countries to lag behind developed ones, even while advanced economies benefit from technological developments. This disparity has the potential to worsen economic inequality and obstruct the growth of equitable international trade (Insee & Suttipun, 2023). Two things that need to be done are reducing the digital gap and ensuring that every country can benefit from technological advancements and international Trade. In addition to financial improvements in infrastructure, closing this gap would need regulatory changes and educational programs that promote fair access to digital resources and chances for economic engagement.

Cybersecurity and Data Privacy

As Trade increasingly moves toward digital platforms, worries about cybersecurity and data privacy are intensifying. Data leaks and cyberattacks can potentially sabotage Trade and undermine trust amongst business partners. Protecting personal information and putting strong cybersecurity measures in place is essential to ensuring international trade integrity and smooth functioning (Alanazi, 2023). Cooperation and international standards are crucial to a safe digital trading environment. Stakeholders may reduce risks and increase confidence in digital trade transactions by proactively resolving these issues, enabling seamless and safe international trade interactions.

Sustainability and Ecological Impact

The combination of technology and business brings up significant environmental and sustainability concerns. Although technology may lead to increased resource consumption and pollution, it can also increase productivity and decrease the environmental effect of business. While fostering economic growth, adopting sustainable behaviors and utilizing technical advancements can reduce adverse ecological effects. To ensure that commerce contributes to long-term economic development and environmental well-being, it is imperative to balance environmental sustainability and technological innovation (Alanazi, 2023). To preserve the condition of our planet for future generations, governments, corporations, and individuals must work together to create and implement policies prioritizing sustainability in Trade and technological advancement.

Research Studies

The growth of e-commerce in china.

China has become a significant player in the global e-commerce sector because of its quick technical improvements. The nation’s adoption of cutting-edge technology, including blockchain, big data, and artificial intelligence (AI), has improved operational efficiency and user experience on critical platforms like JD.com and Alibaba (Figure 1) (Falcone et al., 2019). Many customers and businesses are drawn to these technologies because they provide safe transactions, customized shopping experiences, and effective supply chain management.

This development has been made possible mainly by the Chinese government’s encouraging policies and calculated investments in the infrastructure of information and communication technologies. Policies like the “Internet Plus” plan and significant investments in tech firms have created a favorable climate for the expansion of e-commerce (Lukács et al., 2022). The industry’s vitality has also been aided by the growth of high-speed Internet, ubiquitous mobile connection, and logistics network advances, making online transactions and delivery easier. China’s ascent in the e-commerce sector aptly illustrates the advantageous relationship between Trade and technology. Furthermore, Figure 2 illustrates that the wholesale and retail sector is seeing a more rapid growth compared to the manufacturing business. By 2022, the e-commerce income of the wholesale and retail business is projected to surpass RMB 10,000 billion (Li & Zhou, 2023). These findings indicate that the wholesale and retail business will see a growing share in the future due to the advancement of e-commerce. This synergy illustrates how a country may become a global trade leader by adopting innovative technologies and supportive policies.

The German Industry 4.0 Project

The German initiative known as Industry 4.0 perfectly illustrates how technological innovation may stimulate business. Germany has expanded its export markets and significantly improved its industrial competitiveness globally by assiduously integrating cyber-physical systems, artificial intelligence (AI), and the Internet of Things (IoT) into its manufacturing processes (Rainnie et al., 2020). The project highlights the need for well-thought-out plans and robust governmental backing when utilizing technology to enhance Trade. Germany is a role model for nations hoping to leverage Industry 4.0 to drive trade and economic growth because of its proactive embrace of cutting-edge technology and promotion of industry-government cooperation.

India’s Software and IT Export Explosion

India’s IT and software services industry has become a significant factor in its economy and foreign commerce. By utilizing ICT breakthroughs, businesses like Infosys and Tata Consultancy Services (TCS) have emerged as global leaders, providing clients with state-of-the-art solutions (Deshpande 2021). This accomplishment emphasizes how important it is for governments to have policies that support the relationship between commerce and technology. India’s success in the IT sector may largely be attributed to initiatives supporting infrastructure development and IT education (Figure 3) (Jalote & Natarajan, 2019). These policies have catapulted India to the forefront of the global IT services sector, boosting economic growth and international commerce by fostering an atmosphere conducive to technical innovation and entrepreneurial spirit.

Outlook and Trends

Advancements in technology.

The continuous development of new technologies will significantly influence technology and commerce in the future. AI, blockchain technology, and quantum computing have the power to dramatically change international trade by fostering productivity, security, and creativity. Blockchain can streamline supply chains, lower fraud, and increase transaction transparency and trust (Figure 4) (Afrin & Pathak, 2023). Quantum computing has the potential to completely transform our ability to solve problems by improving data analysis and complicated logistics in ways that were previously unthinkable. By streamlining operations and customizing consumer experiences, AI may streamline workflows, enhance decision-making via predictive analytics, and create new business opportunities.

These technologies provide unseen opportunities to improve decision-making, streamline processes, and create new commercial opportunities. For nations and companies hoping to stay competitive in the global economy, staying up to date with these advancements will be essential (Jaiswal et al., 2022). Countries prioritizing skill development, infrastructure, and education will be better positioned to exploit these developments. Likewise, companies investing in state-of-the-art technology and cultivating an innovative culture will be leaders in their respective fields. It will be crucial to embrace innovation and devote significant resources to research and development to fully realize the potential of emerging technologies and support future trade and commerce expansion. Governments, academic institutions, and the commercial sector must work together to foster an environment that encourages technology developments and their incorporation into frameworks for international commerce.

Regional Integration and Trade Blocs

Trade blocs and regional integration will continue to impact the relationship between business and technology significantly. Programs like the African Continental Free Trade Area (AfCFTA) are designed to lower tariffs and promote cooperation among member nations to increase intra-African Trade (Ndonga et al., 2020). These initiatives can encourage regional economic growth and development by promoting the sharing of technology, expertise, and innovative ideas. Regional blocs that are more connected and collaborate provide synergies that double the advantages of technology improvements and spur innovation and competitiveness. In the coming years, commerce blocs will play a more significant role in influencing the interaction between technology and Trade as nations understand the benefits of regional integration.

Inclusive and Sustainable Trade

In order to create a more robust and just global economic system, future commerce must prioritize sustainability and inclusiveness. It is essential to close the digital divide, ensure cybersecurity, and adopt sustainable practices. Policies and initiatives that promote technology transfer, capacity building, and environmental sustainability will be crucial to achieving these goals (Corsi et al., 2020). Countries can close the digital divide and provide excluded populations more influence by guaranteeing fair technological access and encouraging digital literacy. In an increasingly linked world, strong cybersecurity measures are required to defend against cyberattacks and secure critical data. Furthermore, sustainable practices are essential for preventing environmental deterioration and fostering long-term economic resilience.

In conclusion, Trade and technology have much in common and are advantageous. Technological developments promote commerce by improving supply networks, lowering obstacles, and increasing productivity. Automation and artificial intelligence, for example, increase productivity and lower manufacturing costs, increasing the competitiveness of products on the international market. In addition, Trade stimulates innovation by introducing businesses to fresh markets and rivalry, forcing them to make R&D investments to maintain their competitive edge. In order to solve issues, take advantage of opportunities, and establish this connection, government policies and international collaboration are essential. Making the most of Trade and technical synergies will be essential to attaining sustainable and equitable global economic development as the globe changes.

Afrin, N., & Pathak, A. (2023). Blockchain-powered security and transparency in supply chain : exploring traceability and authenticity through smart contracts. International Journal of Computer Applications , 85 (49), 5–15.

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Falcone, E., Kent, J., & Fugate, B. (2019). Supply chain technologies, interorganizational network and firm performance . International Journal of Physical Distribution & Logistics Management , 50 (3), 333–354.

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Jaiswal, A., Arun, C. J., & Varma, A. (2022). Rebooting employees : Upskilling for artificial intelligence in multinational corporations.  The International Journal of Human Resource Management ,  33 (6), 1179-1208.

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Ndonga, D., Laryea, E., & Chaponda, M. (2020). Assessing the potential impact of the African continental free trade area on least developed countries : A case study of Malawi.  Journal of Southern African Studies ,  46 (4), 773-792.

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BusinessEssay. (2024, August 2). The Interplay of Technology and Trade: Transforming Global Economic Competitiveness. https://business-essay.com/the-interplay-of-technology-and-trade-transforming-global-economic-competitiveness/

"The Interplay of Technology and Trade: Transforming Global Economic Competitiveness." BusinessEssay , 2 Aug. 2024, business-essay.com/the-interplay-of-technology-and-trade-transforming-global-economic-competitiveness/.

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BusinessEssay . 2024. "The Interplay of Technology and Trade: Transforming Global Economic Competitiveness." August 2, 2024. https://business-essay.com/the-interplay-of-technology-and-trade-transforming-global-economic-competitiveness/.

1. BusinessEssay . "The Interplay of Technology and Trade: Transforming Global Economic Competitiveness." August 2, 2024. https://business-essay.com/the-interplay-of-technology-and-trade-transforming-global-economic-competitiveness/.

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BusinessEssay . "The Interplay of Technology and Trade: Transforming Global Economic Competitiveness." August 2, 2024. https://business-essay.com/the-interplay-of-technology-and-trade-transforming-global-economic-competitiveness/.

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Global Competitiveness ( Edexcel A Level Business )

Revision note.

Exchange Rate Fluctuations

• Global competitiveness is the ability of a business to perform better than its rivals across markets in different countries  
• An exchange rate is the value of one currency in terms of another currency
• Currency appreciation and depreciation have different impacts on a business  

Currency appreciation

• E.g. if £1= $1.60 and then increases to £1 = $1.80, the value of the £ has appreciated against the US$   

The Impact of Currency Appreciation on Global Competitiveness

  Currency depreciation

• E.g. If £1 = $1.60 and then falls to £1 = $1.20 t he value of the £ has depreciated against the US$   

The Impact of a Currency Depreciation on Global Competitiveness

Paper 1 and Paper 3 frequently question you on the impact of exchange rate changes on a business. The information may be presented as a) a written extract or b) a table or graph showing the fluctuations in the exchange rate. It is important to be able to explain whether an appreciation or depreciation has occurred 

Acronyms to help explain the impact of exchange rate changes include:

S.P.I.C.E.D - Strong Pound Imports Cheaper Exports Dearer (dearer means more expensive)

W.P.I.D.E.C - Weak Pound Imports Dearer Exports Cheaper

You can use the ‘pound’ interchangeably with any other currency used in the exam 

Competitive Advantage

• Two factors that provide competitive advantage include cost leadership and differentiation  

Cost Leadership and Differentiation

The Impact of Skills Shortages

• If a business is unable to find the labour with the required skills it will affect their ability to gain a competitive advantage
• This could increase unit costs due to factors such as waste   
• Product differentiation is less likely to occur where workers lack the skills and expertise to produce highly differentiated products 
• In order to overcome these issues, a business can use outsourcing and offshoring to access the skills needed for their business 

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Author: Jennifer Aryiku

Jennifer has completed a degree in Economics at City University London and a PGCE in Business and Economics Education from the Institute of Education, UCL. She is passionate about young people and helping in their education. She has over 10 years experience which includes working as an Academic Mentor and Head of Economics & Financial Education. Jennifer has also co-written an Economics workbook and is an examiner for UK exam boards.

Global Competitiveness and Entrepreneurship Report

• To find inspiration for your paper and overcome writer’s block
• As a source of information (ensure proper referencing)
• As a template for you assignment

Global competitiveness is determined by several factors including inflation rates and the economic system of the country, its market structure, and export-import policies. Global competitiveness has a great impact on the fashion industry and its potential, market opportunities, and growth. The current literature can be divided into two broad categories: theoretical literature and case study examples which reflect the current state of the global market. Boyd (2006), Dicken (2003), and Usunier (2000) produce a theoretical explanation of global competitiveness and its impact on different industries. Usunier (2000) analyzes the impact of cultural values and traditions on entrepreneur activity and business operations. Finance is a scarce commodity which meant that those who had access to it had an immense competitive advantage. But today, raising finance is perhaps the least difficult of the tasks facing an organization. Boyd (2006) and Dicken (2003) underline that with supply outstripping demand in the world’s financial markets, it has become comparatively easy for an entrepreneur to find the capital he or she needs. Many of the companies in which these investments are made a trade at enormous price/earnings ratios even though they have never sold a thing. What these investments represent is the recognition that an organization’s key asset is not its economies of scale, its track record, its brand — or any of the other trump cards traditionally held by the incumbents in a market. Saloner et al (2001) evaluate the role and impact of strategic management on global competitiveness and entrepreneur activity. The author concludes that what the investors are betting on is the organization’s knowledge — often pure, unadulterated knowledge, untouched by conventional commercial realities — which will potentially stand the accepted way of doing things on its head. An organization can gather information (from itself, from its customers, from the market as a whole) and exploit the knowledge it can distill from this which is the new scarce resource.

One of the main documents which reflect the current state of competitiveness in The Global Competitiveness Report. The report provides businessmen and analysts with competitive indexes and country profiles, including analysis of business community and economic opportunities in different countries of the world. For fashion industry entrepreneurs, this information can help to evaluate market potential and growth opportunities, possible threats, and weaknesses of the market. The report underlines that financial muscle, a large labor force, or a major manufacturing plant is much less valuable; as many companies with large quantities of physical assets are finding, these things are often a hindrance, an impediment to change. All over the world, large organizations are recognizing the importance of information. The purpose of a brand is to generate loyalty for a product that is essentially undifferentiated. Attempts to change their traditional formulae have led to customer resistance even though the companies’ tasting panels showed that people prefer the new formulation. more and more brand-based companies are being forced to provide information because this is what their consumers expect. Technology and the Internet have both meant that the amount of information available to individuals is increasing exponentially: if you are not sure what you are buying from one manufacturer, you can check out the rival products quickly and cheaply. Information is empowering consumers.

The large layer of literature provides an analysis of the fashion industry and its benefits and threats for entrepreneurs. Cumbler (2006), Donald (2001), Fields (2003) find that in the future, entrepreneurs will need to rely far less on the high-level image created by a brand but will be able to make far more informed purchase decisions. Already on the Internet, companies are acting as ‘infomediaries’ who help potential purchasers find the best deal around, whether this applies to used cars or airline tickets. Global competitiveness will be determined by such factors as the global leadership of MNCs and TNCs. To compete on the global scale, fashion retailers should adapt to the new environment and change the balance of power from the corporate manufacturer to the individual purchaser. It means that consumers will be able to specify what they want more precisely rather than accept what the supplier or retailer offers. As home shopping for groceries takes off, we predict that the existing supermarket chains, whose brands at the moment are linked to choice, quality, freshness, and so on, will develop information-based brands that will emphasize different qualities — the amount of information they have on a customer’s previous purchases, being able to recommend recipes based on an individual’s preferences and so on.

Ford (2007), Knutsen (2003), and O’Hara (2004) underline the globalization of the fashion industry. They find that global competitiveness depends upon a country’s image and political stability. This is a trend that will not be confined to retailers: given not only escalating consumer expectations but also the highly automated production lines and just-in-time supply chains of most manufacturers, the days of mass production must be severely limited. One of the key areas of competition is over access to distribution channels to ensure that products could be brought to market. More precise targeting could be made of individual consumers (a topic we cover in-depth later on in the book), leading to higher returns. The question is not whether the marketing budget is apportioned inefficiently, but how inefficiently. Yet we assume that because the information has been distilled into knowledge — because the market research has become an executive report — the most important information has been preserved.

Bibliography

Boyd, Britta. 2006, Globalization and Entrepreneurship: Policy and Strategy Perspective , Edward Elgar Publishing.

Cumbler, J. T. 2006, Slaves to Fashion: Poverty and Abuse in the New Sweatshops. Journal of Social History, 40 (1), 43.

Dicken,Peter. 2003, G lobal Shift-Reshaping the Global Economic Map in the 21st Century. The Guilford Press; 4th edition.

Donald, B. 2001, Economic Competitiveness and Quality of Life in City Regions: Compatible Concepts? Canadian Journal of Urban Research , 10 (1), 43.

Fields, J., 2003, Fashion and Its Social Agendas: Class, Gender, and Identity in Clothing. Journal of Social History , 37 (1), 43.

Ford, G. S., Koutsky, L. J., Spiwak, L.L., 2007, Competition after Unbundling: Entry, Industry Structure, and Convergence. Communications Law Journal, 59 (1), 43.

The Global Competitiveness Report 2008-2009 . Web.

Knutsen, H. M., 2003, Globalisation and the Garment Industry in Sri Lanka . Journal of Contemporary Asia, 33 (1), 223.

O’Hara, Ph. A. 2004, Cultural Contradictions of Global Capitalism. Journal of Economic Issues, 38 (1), 413.

Saloner, Garth, Shepard, Andrea, Podolny, Joel. 2001, Strategic Management . Wiley. Usunier J. C. 2000, Marketing Across Cultures 3rd edn. Prentice Hall; 2 Sub edition.

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IvyPanda. (2021, October 3). Global Competitiveness and Entrepreneurship. https://ivypanda.com/essays/global-competitiveness-and-entrepreneurship/

"Global Competitiveness and Entrepreneurship." IvyPanda , 3 Oct. 2021, ivypanda.com/essays/global-competitiveness-and-entrepreneurship/.

IvyPanda . (2021) 'Global Competitiveness and Entrepreneurship'. 3 October.

IvyPanda . 2021. "Global Competitiveness and Entrepreneurship." October 3, 2021. https://ivypanda.com/essays/global-competitiveness-and-entrepreneurship/.

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What Do Globally Competent Students Look Like?

  by Participate Learning

Editor’s note: this article was originally published on April 26, 2017. It was updated on November 21, 2018.

Our futures are increasingly linked to the challenges of the global community. The world’s population is predicted to grow from 7.3 billion to 8.5 billion in 2030 and to nearly 10 billion by 2050. Such population growth will affect pollution and disease management. It also means the depletion of energy, food and water resources.

For students to take part in this changing world, they must understand it. The 21st century student will work for international companies. They will manage employees from other cultures, collaborate with people all over the world and solve global problems.

Nine in 10 students recognize that jobs are becoming more international in nature. They also believe understanding different cultures would make them stronger employees.

Defining global competitiveness

The mission of the U.S. Department of Education includes promoting student achievement. It also includes promoting global competitiveness and equal access.

Strategies for achievement, preparation, and equity are vast. There is an expectation in the U.S. that our education system will prepare students for college, jobs and the world in general.

Global competitiveness can be defined as the set of skills that help someone be a productive member of their community and the world.

Being globally competitive today requires developing global competence. Equipping students with hard skills to compete in a global job market is important. Cultivating their ability to communicate across cultures in respectful ways is critical.

Defining global competence

This is where global competence becomes important. We must equip students not only for the world they live in now, but also for the future. Each day, technology makes the world more accessible and increases intercultural interactions.

Ethno-cultural conflicts are the most common source of political violence in the world today. Students need global competence to build a more peaceful future. We must increase students’ capacity to respectfully interact with the world around them.

The definition of global competence is dynamic. These soft skills and characteristics are widely seen as what students need to be globally competent today.

Appreciation of culture

Students see their own cultures as strengths and seek to understand the cultures of others. They are aware of similarities and differences among cultures. They understand that behaviors and values are often tied to cultures.

Evaluation of information

Students regularly question easily accessible information to seek deeper understanding and thoughtfully evaluate materials and perspectives, rather than accepting things at face value.

Cross-cultural communication skills

Students effectively exchange ideas with peers and adults from different backgrounds. They have the skills to enter new communities and spaces.

Perspective-taking skills

Students show curiosity and empathy. They may show compassion for the perspectives of others.

Intelligent humility

Students understand that their knowledge is not infinite. They appreciate how much more there is to learn about the world. Students understand the grandiosity of the world and its complexities.

Divergent thinking

Students see alternative or original solutions to existing problems. They can envision the world differently from how it currently exists.

Technological literacy

Students use and explore existing technologies to communicate and collaborate with others. They also use it to learn and share new ideas and information. Students create new technologies or discover new uses that help them and others navigate the world.

Global education as a path to equity

Recent K–12 education efforts  like STEAM, 1:1 technology, and cultural exchange promote global competence. These efforts are growing in popularity, but they are not available to most students.

All students are equally deserving of an education that prepares them for the world. So how do we as educators create opportunities and deliver instruction that ensures global competence for all? One option is to provide students with multicultural perspectives across subject areas .

A simple term for this is global education.

Successful global education approaches recognize what students need to flourish in the world. They integrate activities that resolve opportunity gaps among students on a daily basis.

This starts by exposing students to a variety of cultural experiences. They don’t need to leave the classroom to do this. Discussing global challenges, doing a virtual exchange and other activities all bring the world to the classroom. They open a students’ mind to different ways of life.

This post is part of a blog series written by Participate Learning on global education. It was originally published on Getting Smart and has been updated. Join the conversation with us on Twitter using #GlobalLeaders .

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