1. Transitional Countries Integration with the European Union 4th period 2009-2010 Intensive Course 1st Lecture Monday 12.4.2010 Professor Juha Väätänen

2. 26.6.2015 Goal of the Course To understand the basics of competitiveness globally and within EU To get familiar with new and future EU member states and the enlargement process To get knowledge on dynamics of the trade and investment flows inside EU

3. 26.6.2015 Own Background Professor, International Business Teaching and researching transitional economies Transitional countries visited: Estonia, Latvia, Lithuania, Poland, Czech republic, Slovakia, Hungary, Slovenia, Croatia, Romania, Bulgaria, Russia and Ukraine

4. 26.6.2015 Teaching Lectures: –Monday 12.42 h (12-14)r. 4501 –Tuesday 13.4 3 h (12-15)r. 4501 –Tuesday 20.46 h (11-17)r. 2303 –Thursday 22.46 h (10-16)r. 7343.2 –Monday 26.46 h (10-16)r. 7343.2 –Wednesday 28.46 h (10-16)r. 4402

5. 26.6.2015 Requirements Course assignment (presentation)30% of grade –Investigating various aspects of EU competitiveness Exam Monday 10.5 at 16.15-19.15 70% of grade Both assignment and exam have to be passed acceptably. Course readings: –Tauno Tiusanen, Business Climate in Transitional Economies LUT, Nordi, publication 48 available: http://www.lut.fi/en/NORDI/publications/publicationslist/2008/Documents/4 8_Business_climate_in_Transitional_Economies.pdf –UNCTAD, World Investment Report 2009 available: http://www.unctad.org/en/docs/wir2009_en.pdfhttp://www.unctad.org/en/docs/wir2009_en.pdf –World Economic Forum, The Global Competitiveness Report 2009- 2010 available: http://www.weforum.org/pdf/GCR09/GCR20092010fullreport.pdf

6. 26.6.2015 Course assignment Instructions –Group of 3 persons –Each group will prepare a course assignment investigating EU competitiveness –Powerpoint presentation max. 20 min –More instructions on the handout –Groups should be formed as soon as possible (today)

7. 26.6.2015 Contact Information Professor Juha Väätänen –Office 4658 –e-mail: juha.vaatanen@lut.fi –Office hour: Tuesdays at 13-14 Assistant Juha Hinkkanen –Office 4650 –e-mail: juha.j.hinkkanen@lut.fi –Office hour: Wednesday at 12-13

8. 26.6.2015 EUROPEAN UNION Source: Europa

9. 26.6.2015Source: Europa

10. 26.6.2015 European Union & EU candidate countries Croatia, FYR Macedonia, Turkey and now also Iceland Source: Europa

11. Which countries are competitive?

12. 26.6.2015 What is competitiveness? Source: UNCTAD, IMD, WEF

13. 26.6.2015 What is competitiveness? Professor Michael E. Porter World Economic Forum & Harvard Business School, The Institute for Strategy and Competitiveness Source: WEF

14. 26.6.2015 WEF, The World Economic Forum Source: WEF

15. 26.6.2015 WEF, The World Economic Forum WEF is an independent international organization committed to improving the state of the world Global Competitiveness Report –annual study –one of the leading monitors of the competitive condition of economies worldwide –assessed 133 economies in the last report www.weforum.org Source: WEF

16. 26.6.2015 WEF, The World Economic Forum The methodology used by the Forum to assess national competitiveness has evolved over time, taking into account the latest thinking on the factors driving competitiveness and growth The Global Competitiveness Index (twelve pillars and three stages of development) Pillars: 1) Institutions2) Infrastructure 3) Macroeconomy4) Health and primary education 5) Higher education and training6) Goods market efficiency 7) Labor market efficiency8) Financial market sophistication 9) Technological readiness10) Market size 11) Business sophistication12) Innovation Three development stages, which are based on USD GDP per capita at market exchange rates and the extent to which countries are factor driven (share of exports of primary goods in total exports) : 1)Factor-driven2) Efficiency-driven 3) Innovation-driven Source: WEF

17. 26.6.2015 New Global Competitiveness Index rankings Source: World Economic Forum TOP 10 2009200820072006 United States2116 Switzerland1221 Denmark5334 Sweden4443 Singapore3575 Finland6662 Germany7758 Netherlands108 9 Japan8987 Canada9101312

18. 26.6.2015 IMD, International Institute for Management Development Leading provider of Executive Education for large and medium size international businesses, and for individuals World Competitiveness Center –World Competitiveness Yearbook –Yearbook (WCY) is an annual report on the competitiveness of nations, ranking and analyzing how a nation’s environment creates and sustains the competitiveness of enterprises –55 economies analyzed –Includes 331 different criteria, grouped into four Competitiveness Factors: Economic performance, Government efficiency, Business efficiency and Infrastructure Source: IMD

19. 26.6.2015 IMD, International Institute for Management Development –Economic Performance Domestic Economy International Trade International Investment Employment Prices –Government Efficiency Public Finance Fiscal Policy Institutional Framework Business Legislation Societal Framework –Business Efficiency Productivity Labor Market Finance Management Practices Attitudes and Values –Infrastructure Basic Infrastructure Technological Infrastructure Scientific Infrastructure Health and Environment Education List of Criteria Source: IMD

20. 26.6.2015 IMD, The World Competitiveness Scoreboard TOP 10 Source: IMD 2009200820072006 United States1111 Singapore3223 Hong Kong2332 Switzerland4468 Luxembourg12549 Denmark5655 Australia167126 Canada88107 Sweden69914 Netherlands10 815

21. 26.6.2015 UNCTAD, United Nations Conference on Trade and Development Provides information on –Globalization and development –International trade and commodities –Investments –Technology and enterprise development www.unctad.org Source: UNCTAD

22. 26.6.2015 UNCTAD, Foreign Direct Investments Inward FDI per capita, flow 2007, $ (countries with population over 0,5 million) TOP Performers Source: UNCTAD 2008 Hong Kong 8 312 Ireland 7 113 Netherlands 6 056 Singapore 5 441 Switzerland 5 372 Belgium 3 885 United Kingdom 3 672 Austria 3 669 Canada 3 305 United Arab Emirates 3 026

23. 26.6.2015 UNCTAD, Foreign Direct Investments Inward FDI per capita, stock 2007, $ (countries with population over 0,5 million) TOP Performers Source: UNCTAD 2008 Hong Kong 164 371 Belgium 71 539 Singapore 56 278 Ireland 43 522 Netherlands 41 016 Switzerland 36 993 Sweden 27 904 Denmark 26 944 United Kingdom 22 094 Norway 19 942

24. 26.6.2015 Which countries are competitive?

25. 26.6.2015 Teaching Lectures: –Monday 12.42 h (12-14)r. 4501 –Tuesday 13.4 3 h (12-15)r. 4501 –Tuesday 20.46 h (11-17)r. 2303 –Thursday 22.46 h (10-16)r. 7343.2 –Monday 26.46 h (10-16)r. 7343.2 –Wednesday 28.46 h (10-16)r. 4402

26. 26.6.2015 Course assignment -Topics Presentations on Monday 26.4 1.Comparison of labor costs in EU member countries 2.European design, global manufacturing – Case H&M 3.Global competitiveness of European car manufacturing 4.Successful exporter from new EU-member country Slovenia – Case Gorenje 5.High-tech success story from EU? – Case Airbus Presentations on Wednesday 28.4 6.New EU members in 2007 – Country presentation Romania 7. New candidate country – Country presentation Turkey 8.Agricultural sector in the EU 9.R&D – EU’s best opportunity for success in the global competition?

27. 26.6.2015 Source: Europa