Scribd
Upload
13 views24 pages

Globalization and Competitiveness

1. The cost of labor in the Philippines is rising and is no longer as competitive compared to other lower-wage countries in Southeast Asia. 2. The educational system and English proficiency of the Filipino workforce could be improved to better attract foreign investors. There is a lack of continuity from basic to higher education. 3. The government has been slow to adapt policies to increase competitiveness and has lost market share in industries like electronics and pharmaceuticals to countries like Japan that have stronger government support of industries.

Uploaded by

Jecho Macatangay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
13 views24 pages

Globalization and Competitiveness

1. The cost of labor in the Philippines is rising and is no longer as competitive compared to other lower-wage countries in Southeast Asia. 2. The educational system and English proficiency of the Filipino workforce could be improved to better attract foreign investors. There is a lack of continuity from basic to higher education. 3. The government has been slow to adapt policies to increase competitiveness and has lost market share in industries like electronics and pharmaceuticals to countries like Japan that have stronger government support of industries.

Uploaded by

Jecho Macatangay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 24

GLOBALIZATION

AND
COMPETITIVENESS
Learning Outcomes:
1. Interpret how governments
influence competitiveness in the
economic sphere of the world
2. Analyze why globalization is
uneven based on globalization
measures and its implication
3. Recognize the effects of the global
ranking of globalization across the
world
4. Internalize one’s role and
participation in the development of
the society as future professionals.
WHAT MAKES THEM DIFFERENT?
◦ Samsung of South Korea has
addressed its desire to remain
competitive in the global economy.

◦ To expand its ability to deliver


quality products and services in a
highly competitive industry of mobile
phones, it has developed a Global
Leadership Program, to provide its
top managers with a global outlook.
GLOBALIZATION AND
COMPETITIVENESS
◦ Competitiveness has become a
prominent business and government
concern in the era of global business as
a contest among nations.

◦ It is a direct consequence of the


unprecedented proximity among nations
in the global marketplace as defined by
the International Monetary Fund (IMF).
International
Monetary Fund (IMF)
◦ is an organization of 189
countries, working to foster
global monetary cooperation
, secure financial stability,
facilitate international trade,
promote high employment
and sustainable economic
growth, and reduce poverty
around the world.
RELATIVE STANDING TODAY,
LOOKING FORWARD
◦ Competitiveness can refer to a country’s
preparedness for future competitive
interactions.
◦ Example, Philippine Airlines – tagged as
Asia’s first airline known to its Mabuhay Class
(1st airline to offer sky bed in long haul flights)
needs to stay competitive against two Asian
giants – Singapore Airlines and Cathay Pacific
Airways to win for a number of industry
players who faced higher airfare and
maintenance costs (Abelos, et.al., 2006)
Several measures for the criterion:
◦ Cost of labor in a country
◦ Example: questionable competitiveness of US
labor costs in relation to lower wage rates in other
countries such as the Philippines, Mexico,
Vietnam, and Indonesia.
◦ This creates some controversy and ethical dilemma
for global managers when companies seeking
lower-wage personnel close factories in the US and
move production facilities to China, Vietnam,
Thailand, and the Philippines.
Several measures for the criterion:
◦ Education level of a country’s workforce
◦ government representatives who seek to
attract new investors in their economics like
to cite literacy rates and skilled training.

◦ Example: English proficiency as a factor in


the US companies establishing plants and
facilities in other nations. (included to this is
the lack of 2 years in the BEC of the OFWs
– creation of K-12)
HOW GOVERNMENTS
INFLUENCE
COMPETITIVENESS
◦ It is common wisdom that the US
has been slow to recognize and
adapt to the globalization of
business.
◦ Japan has become the most visible
competitor nation although South
Korea is heading into the same
direction.
HOW GOVERNMENTS
INFLUENCE COMPETITIVENESS
◦ Example: although home technology was originally
developed in the US, no one video cassette recorder
has been manufactured in this country. Japan now
controls the world’s $15 billion market for
audio/video market.
◦ The Japanese have taken over a large portion of the
semiconductor market, once an American monopoly,
and have assumed leadership in the development of
new drugs (Porter, 1990).
MEASURING
GLOBALIZATION
◦ There are many alternatives
on how to measure
globalization per country in
the world.
◦ The KOF Swiss Economic
Institute offers a useful
ranking into three broad
categories as follows:
MEASURING
GLOBALIZATION

◦ Economic globalization –
measures long distance flow
of goods, capital, and services
as well as information and
perception that accompany
market exchanges;
MEASURING
GLOBALIZATION
◦Social globalization –
measures the spread
of ideas, information,
images, and people
MEASURING
GLOBALIZATION
◦ Political globalization – measures the
diffusion of government policies in
terms of the number of embassies and
consulates in a country, membership
in international organization, likewise
participation of a counktry in United
Nations peace missions and similar
advocates.
◦ The KOF
Index of Globalisation is
an index of the degree
of globalisation of 122
countries. It was conceived
by Axel Dreher at the
Konjunkturforschungsstelle
of ETH Zurich, in
Switzerland. It was first
published in 2002, and
covered the period from
1970 until that year.
https://www.statista.com/statistics/268168/globalization-index-by-country/
https://www.statista.com/statistics/268171/index-of-economic-globalization/
https://www.statista.com/statistics/268170/index-of-social-globalization/
https://www.statista.com/statistics/268169/index-for-political-globalization/
THINK OF IT!
◦ Why is it that despite being
tagged once as the text
capital of the world and
among the top users of social
media (Facebook), the
Philippines is not among the
countries included in any of
the three rankings of
globalization?
What hinders the
Philippines from being
economically competitive?

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy