National Competitiveness - Literature review Example

National Competitiveness Introduction Brazil is among the group of emerging economies and most attractivefor investing according to the report released in 2008. It is notable that even during the time of the world economic crisis; the country remained among the most attractive foreign nation for investing compared to many of the other emerging economies. In addition to the consolidated monetary value of the nation, the government is another key subject that facilitates and supports the attaining of a competitive national advantage as well as international presence (Bouchard, 2009, p 24). The subject of the priorities within the country is reflected accordingly in the agenda of the country, including aspects such as infrastructure, stimulus for private economic growth and greater productivity efficiency, in the advent of the expansion opportunities for the economic sectors (Arraes, 2010, p 198). Establishing the key economic sectors for the country is another element of consideration in the evaluation of the country’s ability to achieve national economic competitiveness. Brazil as an emerging economy has many opportunities for growth all supported by the economic stimulus in the nation and opportunities to prosper. Therefore, the country is notably pursuant of the given key sectors that control and maintain the status of the national economy. Such established sectors in the country, which constitute the leading economic boosters for the country, include the industry of agriculture, the sector of tourism, industrial and manufacturing productions as well as the establishment of technology and infrastructure. Identification of key sectors The success of a country is extensively reliant on the establishment of international credibility for that country within the trading units. The subject of economic reforms and the advent of social mobility of the economic practices is a notable element that impairs the achievement of a stable economy. Demographics such as population and the level of development and infrastructure are also notable in imposing an impact in the establishment of economic credibility at the national and international settings. The economic policy follows through to the establishments such as inflation targets, primary surpluses and the rate of fluctuation of the exchange rates. Investor confidence within the economy of the country is another element of consideration in evaluating and processing the economic status of the national key economic sectors. In Brazil the core considerations in this refection incorporates the established demographics, positioning and location of the given sectors and their facilitation in the growth of the country towards achieving national competitiveness advantage (Sen, Senturk & Ozkan, 2014, p 10). The notable key industries include the agriculture sector in the country. Agriculture is key to the economy of Brazil considering that the nation has an immense endowment of agricultural resources at its disposal. The country’s key agricultural components include the farming practices that incorporate the cultivation of coffee, soybeans, wheat, rice, corn, and sugarcane, cocoa, citrus and beef (Lundvall, 2010, p 65). These key economic components of the agricultural sector define the establishment of the nation of brazil as a key and considerable competitor at the continental and international standings. The most significant components of the agricultural industry that support Brazil include the farming of the exports such as coffee, soybeans, beef, sugarcane, ethanol and chicken. Notably, the Brazil agricultural industry is divided into two sections, namely the southern Brazil which constitutes about two thirds of the total agricultural produce of the country. Brazil and its possession of resources such as quality soils for farming and temperature and climate settings facilitate the farming for the nation. The northeast Brazil that covers the Amazon basin is another section of main agricultural production including the farming of beef and other associated crops such as coca and citrus. Thus, the agricultural sector is key in the national economic growth of Brazil. Another notable sector of economic contribution in Brazil is the sector of tourism. The country is among the leading most attractive nations in the South American region as well as among the entire world. Tourism as a major industry relies on the natural settings as well as the infrastructural development of the country. Notably, the establishments of Brazil as a world destination region are notable advancement of the country in facilitating social development of the nation. Tourism relies on the established fabulous peek of complex natural features, as well as the complex cultural heritage of the nation. Tourism rates in the nation have continued to remain on the rise, skyrocketing accordingly since 2000 (Alencar & Strachman, 2014, p 678). The establishment of a multifaceted awareness of the country is a key factor for appeal in the rising of the Brazilian nation as a tourist’s destination. Despite the issues of economic failures in the world, the tourism industry in Brazil has continued to remain at the peak as a key sector relying extensively on the establishment of the domestic and foreign contributions of the sector. Notably, the nation has a vast demographic composition, with huge populations constituting of both rich and middle class populations. Thus, from this establishment, the tourism industry of the country remains at the peak with Brazil maintaining the position of most visited country in the southern continent of America (Sen, Senturk & Ozkan, 2014, p 8). Among the major draw-cards that facilitate economic growth of the country through tourism is the establishment of the unique and vast cultural integrity in addition to the absolute beauty of the country. The main sceneries of attraction in the country include the Amazon jungle, Amazon River, the many and expansive rainforests in the tropical region, expansive and beautiful beaches and the unique and fascinating plan and animal species in the country. Thus, such elements are notable in facilitating the economic growth of the country through the tourism sector. The industrial sector is another key component of economic growth in Brazil. The national industry in its recent establishments has seen a prolonged and continuous weakness as the economy suffers from the structural constrains causing low competitiveness and inefficiency from the manufacturers in the nation. The recession rendered the manufactures significant setback causing the industry to face stiff competition from other economic components (Industry and Employment Trends, 2011, p 34). However, despite these establishments, the country still relies extensively on the established manufacturing industry in the facilitating of growth and considerable establishments in the national competitiveness. The industry facilitates the production of many manufacturing components form the engineering fields in addition to the mechanical and construction works (SWOT Analysis, 2009, p 7). This activates the infrastructural development of the country leading to a significant milestone being accomplished in the pursuit for national competitiveness and economic growth (Brazil Commercial Banking Report, 2014, p 43). The considerable sector of technology and infrastructure is another economic boosting sector for Brazil, contributing significantly towards the national competitiveness for the nation. The country is extensively reliant on the competitiveness of the productive and trading sectors of the nation. However, without proper infrastructure and technology, it is evident that agriculture, tourism and industrial production as key economic sectors will have little impact and a stagnant progress towards the country’s economic significance (Filho, 2010, p 13). Think of the transporting of the agricultural products to the industries or the points of distribution. Thus, infrastructure is notable component of the economic sector of the nation with respect to recent growth and establishments. Launching of technological platforms for engaging the country alongside the economic stimulation models is another aspect of consideration defining infrastructure and technology as key sectors of economic growth. Thus, these establishments factored in the national master plan for economic growth are notable in contributing to the economic growth of the Brazilian country into achieving national competitiveness and advantage. Analysis using the Michael Porters diamond model Firm strategy structure and rivalry The establishment of the national conditions that facilitate the necessary regulation for economic growth is key for the nation to achieve the national competitiveness. The supporting components in this perspective incorporate the policies in place to facilitate the formulation of the industries, companies, and associations for trade. The nature of the domestic competitiveness within the given participants in the given sector is key to the improvement of the entire national economy. Further, from the competitive establishments, the home participants work accordingly towards creating pressure for them to launch new and upgraded products and items thus increasing the quality of the products it brings to the market, increasing entire competitiveness of the nation. In reflection of Brazil, it is evident that the country is investing accordingly towards the improvement of the local participants in the economic growth of the country (Brazil, 2015, p 3). For instance, at the evaluation of the agricultural sector, it is evident that each of the farmers participates positively and actively alongside the set trade regulations or agricultural guidelines for production. This allows a fair competition among the agricultural producing firms, which facilitates the economic stimulation of the country as a key sector. In reflection of the established tourism sector, Brazil uses its given laws and policies to regulate and support domestic tourism and the participants in the industry; hence, allowing the expected growth for the nation (Zhang, 2010, p 67). The industries and manufacturing sector as well as technology and infrastructure continue to rely on the established bodies that regulate the competition environment for successful and fair participation of each of the parties. Thus, from this observation, it is notable that brazil is key in observing and facilitating the strategies, structure and rivalry in a fair way among the domestic competitors, growing each of the economic sectors accordingly. Thus, through such establishments, the nation manages its economic competitiveness at the national level. Demand conditions The nature of the established demand at home for the products of the industry is also a key component for consideration in understanding the level of economic competitive in the nation (Porter, 1998, p 41). The demand for the given goods and services is key since both quantity and quality of the demand affects the rates of production hence the entire economic stimulation of the nation (Cravo & Resende, 2013, p 559). In view of Brazil and the established key economic sectors, each of the sectors has a given remarkable demand as it reflects in the economic achievement of the nation. for instance, in view of the agricultural sector of Brazil, it is evident that as an agricultural nation, the local people constitute a major consumer of the local agricultural produce which allows the nation to experience an economic boost from the home demand capacity. The tourism sector is also a key beneficiary of the given local support as many Brazilians actively engage in the given tourist facilities in the country (Brazil: Business Forecast Report, 2015, p 32). Thus, there is established demand for tourism in the local market, which gives the sector a boost from the local establishments. The industries facilitate goods, which are in high demand such as the given manufacturing products within the local industries. Therefore, following this establishments, it is evident that Brazil is benefitting accordingly from the established local market for each of the products of the given local economic sectors. Related and supporting industries The very existence of related international competitors and suppliers within the related economic sectors is another concept of consideration in reflection of the given national competitiveness of the country. in this element, it is notable that Brazil is a vast nation with a huge composition of active business operators from across the globe (Cravo, Gourlay & Becker, 2012, p 223). Thus, in view of each of the supporting and related industries in the given economic sectors of Brazil, the market is diverse. The diversification of the competitors, for instance within the agricultural sector allows the competitors from the local farms to grow accordingly. Further, the technical support incorporates the regulation protecting the interaction among the local and international companies, hence, achieving the given level of confidentiality (Sen, Senturk & Ozkan, 2014, p 6). This gives the country a competitive advantage since it allows exposure of the local sectors to the other external competition, allowing space to learn and improve on the competition environment. Factor conditions The factor conditions in question in course of the economic establishments of a given nation entail the supporting components that favor and facilitate given economic sectors. The vital production components such as skilled labor and the infrastructure are key to the establishments of the nation competitiveness in the context of the economic growth (Porter, 1998, p 61). The mix of the Brazilian people is a core strength to the economic stimulus of the nation. notably, the country has a population of over 250,000 people, most of whom are in the working age bracket (Country Reports – Brazil, 2014, p 12). Consequently, the nation has a vast composition of labor for either of the economic sectors, from skilled to semi-skilled and unskilled labor. The consideration for each of the given forms of labor is factored in the economic sector in which they operate. For instance, in view of the agricultural economic sector, it is evident that the sector requires a vast amount of unskilled and semi skilled labor (De Mello, 2011, p 6). Thus, with the vast population of people in the nation, it is notable that the sector receives all the support and input necessary for prospering. In view of the sectors of industries, technology and tourism, skilled labour is key to the establishment of competitive advantage (Fishlow, 2010, p 249). Thus, the country relies on the very active education ministry to facilitate all the necessary facilities for developing skills. Brazil has the established institutions up to the tertiary level, which gives it the capacity to grow and establish a skilled labour for these technical economic sectors. Thus, from this view, the nation is able to achieve national competitive. Another element is the established infrastructure in the country. From this observation, it is notable that Brazil has a vast composition of established infrastructural developments including transport networks and mechanical support. Thus, with these aspects in the country established, Brazil enjoys the capacity to build on each of the given economic sectors accordingly (Sen, Senturk & Ozkan, 2014, p 6). The nation approaches each of these given economic facilitators with the expected push creating the morale for the economic development. Thus, in view of the factor conditions, each of the sectors is well supported to facilitate the growth of the country towards achieving national competitiveness. Conclusion Therefore, in view of the Michael Porter’s diamond model, Brazil is a remarkably fast growing economy from the input of the top key for economic sectors. 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