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Chapter 2 International

competitiveness

2.1 International competitiveness general concept

International competitiveness is a process in which higher levels of competitiveness are achieved at equal
levels.

International competitiveness refers to a country’s capacity to produce or sell on foreign markets. The
main measure of international competitiveness is labour productivity, which is largely dependent on tech-
nological progress, the competitiveness of enterprises in the internal market, the level of education of the
population, economic and social policies, commercial and industrial traditions and natural resources.

In 1995, an international competitiveness analysis was carried out. The definition of competitiveness was
divided into two main components:

• Competitive position (Resultant competitiveness)
• Competitive ability (Factor competitiveness)

2.2 Efficiency and Effectiveness

Buckley and others (1988) developed an overall perspective on strategic choices that emphasize interna-
tional competitiveness. According to them, competitiveness is based on efficiency and effectiveness. If a
company pays attention to these two main aspects, it will achieve its goal.