Competitive countries Competitive companies

Author: (English) John Stopford et al.
Publisher:
Publish Date: 2003-04-01
Features: The nation now competes more within its own borders for means to create wealth rather than for dominance over more territory. They compete for wealth as a means to seek dominance—more for maintaining internal stability and social cohesion than for overseas conquest or defensive aggression. The emergence of new global competition models among enterprises affects how governments compete for wealth. Poor and weak nations face increasingly high entry barriers. Nations not only negotiate among themselves on how to distribute wealth but also engage in what we call "triangular diplomacy." They must negotiate directly with often non-powerful enterprises, just as enterprises must negotiate and compete within their own industrial structures. The number of policy choices facing governments and enterprises has doubled. Today, with the existence of stronger trade groups and more influential institutions like the World Trade Organization in the world, they establish clearer "rules of engagement." The emergence of new global competition models among enterprises affects how governments compete for wealth. Poor and weak nations face increasingly high entry barriers. Nations not only negotiate among themselves on how to distribute wealth but also engage in what we call "triangular diplomacy." They must negotiate directly with often non-powerful enterprises, just as enterprises must negotiate and compete within their own industrial structures. The number of policy choices facing governments and enterprises has doubled. Today, with the existence of stronger trade groups and more influential institutions like the World Trade Organization in the world, they establish clearer "rules of engagement."