Nature of global competition

Trade barriers Costs of Production The Behaviour of Businesses International Organisations and Groupings of Developed Economies

Trade barriers The world is full of trade barriers which make exports and imports more difficult and more expensive. Compared to past, barriers have reduced, due to WTO

Costs of Production Competing in a market depends on having as low or preferably lower costs of production than competitors. not as simple as having access to cheap raw material and other factor inputs What counts is productivity ie the amount of output produced from a given amount of input.

The Behaviour of Businesses Low costs are a good place to start a new business from, but you still have to sell the product. A change in business behaviour is often needed to ensure that the customers are the prime focus of business activity, that their needs are fully met (including adapting as these needs change – innovation) and that the low and efficient costs are used as a platform for successful fulfilment of those needs.

International Organisations and Groupings of Developed Economies The European Union The World Trade organisation G-7 The OECD

Eastern Europe Developing Economies