Outline for the international economic

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Discuss the extent to which factor availability is no longer an effective explanation of the competitiveness of regions or countries
Abstract
International economic has been a key area of concern in respect to development of various entities and personal evaluations. In the concept of business and marketing, there are various issues of great concern when analysing this particular economic concept. An outline of international economic is an important provision that gives relevant parties important information about regional economics. The introductory part in this paper is important as it gives a plan about the key issues to be addressed. Major considerable issue of concern is to understand various concepts that relates to international economic. The basic or overall meaning of international economics reflects the trade between countries which incorporates various attributes. In another perspective, international economics describes trade, production and investments across different countries. As a basic issue, international economics addresses the effects of economic activities that results from differences in productive resources and consumer taste. International economics seeks to bring out clearly various patterns and consequences of economic interactions from regional countries in the aspect of trade, migration and investment.
The concept of international economics has been of great importance in the current world influenced by important factor such as globalisation. This is because various world economies have been integrated through transportation and telecommunications. It is important for individuals to consider global perspectives in respect to economic integration which is the means through which businesses grow and resources are distributed in an appropriate manner. International economics is also an important consideration as it results to development of career opportunities for individuals with adequate knowledge and expertise in the filed of business and marketing. Various key issues to address throughout this paper relating to international economics include international finance, trade and economic development. These areas of interest provide an important consideration in respect to various factors that influence the existence of economic relation between different countries. Various benefits in relation to international economics to various countries are established throughout the discussion.
Introduction
Considering the fact that international economics is a wide area to be covered, there are specific areas that need to be clearly addressed. The most important area of concern in this paper is to first discuss the extent with which availability as a factor is no longer an effective explanation of competiveness of regions. The second part of the paper is to address the three key areas concerned with international economics. Addressing international trade, finance and economic development gives a good description about other factors that explain the competitiveness of countries. The third part of the paper is to choose a question that provides a good reflection of competitiveness of regions in the aspect of international economics. This will be effectively addressed through an analysis of economic models used to address the issue of international economics. The final part of the paper is provision of concluding remarks which provides a summary of key issues addressed in the question.
Competiveness of regions or countries
One of the most considerable aspects that influences international economic or trade is competition. The modern world has been competitive, and for countries or regions to survive in such a challenging economic environment, it is important to consider various values. The most important consideration for entities to survive in competitive environment is not only to earn trust for its customers but open for opportunities reserved in the best fields. Fleming (2002) stated that availability was considered as one of the most influential factor to international economic (p.84). However, this has been considered to be ineffective factor to explain the competitiveness of regions. Availability refers to the characteristics of a resources such as usability, operability, and committable with the objective of performing a required function. Initially, for regions to engage in international trade they were supposed to have resources which are accessible, reliable, secure, maintainable and serviceable (Meissner, 2006, p.23). This was the main driving force for different countries which engaged in international trade.
The increase in completion levels influenced by economic integration and growth in the number of customer`s changes occurred. Through globalisation various changes have been experienced in the regional markets a concept which has led to existence of particular factors influencing international economic. This being the case, availability of resources is no more considered to be an effective factor that influences competitiveness of regions. Competiveness refers to the capacity of a region to produce goods and services which are in a position to meet customer preferences in international markets (Kapstein, 2004, p.112). Maintenance of high and sustainable levels of income by regions as they are exposed to external completion is a major considerable issue. This means that for a country or region to be competitive it should consider quality and quantity of goods and services provided.
A nation`s competitiveness is described as the degree to which a country is in a position to produce goods or services that meets the demand of international markets while at the same time increasing real income of its citizens under free and fair market conditions. At national level, competiveness is influenced by superior productivity and the capacity of the economy to transform output into high productive activities which leads to generation of real wages. The major considerable attributes associated with competiveness include improved living standards, availability of employment opportunities and the capacity of a nation to undertake its international obligation. Jovanovic (1998) asserts that competitiveness does not only amount to the capacity of a country to sell its products overseas and maintain trade equilibrium but it entails the fulfilment of various economic values (p.243). On the hand, the major considerable economic values which act as appropriate measure for a competitive economy include rise in living standards, provision of employment opportunities and the economy should not compromise the welfare of future generations. Once these issues are fulfilled, an economy is said to be competitive across regional markets.
The evolution of the world economy which is enhanced by globalization has resulted to strengthening of various economies which has resulted to interrelated and interdependent states. Globalisation which in its simple definition means to integration of regional economies has resulted to international completion (Markwell 2006, p.215). This has resulted to turning of regions and territories into key players of the international market. The process of global completion is a critical component in respect to economic dimension as it has led to strengthening of certain states giving such entities to have a command of powerful resource base for management of local economy. This fact has given different integrated economies the capacity to represent their countries in international trade affairs. The integration of regional economies has led to existence of freedom for developing nations to have a big share in provision of goods and services that meet the preferences of international markets. It is an economic situation which has led to existence of internal ties within a region a fact that has led to social and economic consolidation. This has made the regions to realise internal reserves hence making them efficient in the scope of enjoying integration ties and adaptation to global market conditions (Djajic, 2001, p.15). It is a clear indication that the use of possibilities provided through globalisation makes regional economies to strengthen their international competitive status. Moreover, it is an important consideration in which the regional economies enjoy high levels of national economic competiveness.
It is a phenomenon which has led to transformation of regions into quasi enterprises which are actively involved in raising the levels of competiveness in respect to social, economic and environmental aspects. This measure has led to increase in investment resources and existence of skilled work force which entirely affect the growth of economy (Fleming, 2002, p.5). It is thus in this context that the issue of regional competiveness has been of great concern for international markets in respect to determination, protection and development of regional competiveness. One of the most critical global issues inherent in many localities is ensuring of international competiveness. It is important to note that transformation of regions into stable state which enhance them to meet the requirements of international marketing requirements requires consideration of theoretical attributes. This is connected with evaluation of regional development in the aspect of global competition. According to Caballero (2008), the key considerable values in this context include indicators of regional competiveness, approaches used to identify competiveness of regions and determination of modern paradigm of regional development (p.98).
One major considerable problem in respect to international competition is to establish whether regions act as competitive environment for specific companies or they are independent participants in global competitiveness. Considering regions to act as competitive environment for specific companies amounts to a situation whereby the region is equivalent to a territory. This means that the region referred to as territory serves the purpose of providing competitive environment that support various companies (Kapstein, 2004, p.112). It is a fact that creates individual judgment which reflects competitiveness to be an important fact of companies. The essential element in this scope is consideration of productivity as one of the most important indicator of competitive company.
In the context of business, it is worth noting that competition takes place between companies other than regions. This clearly shows that the concept of considering countries as providers of competitive environment for companies to be deemed valid. This is because regions acts as external environment associated with negative and positive implications on the competiveness of a company. In another context, global economy regions serve as independent subjects that result to existence of competitive relations. This means that global economy regions serve the purpose of diffusing and accumulating knowledge which leads to promotion of new business forms. Cohen (2000) claims that a competitive region is in a position to withstand harsh economic conditions as a strong business base is established (p.278). Competitiveness through globalisation has been an influential factor which has led to existence of strong ties between international regions.
There has been an evolution in international division of labour especially functional specialization. Various aspects arise in this context whereby strategic planning, marketing, management, financial planning, and logistics are major considerations in respect to business activity. Specialisation has led to increased levels of completion whereby certain regions specialise in the production of specific commodity which is distributed across different regions (Gourinchas, Pierre-Olivier and Helen Rey, 2006, p.159). Another major considerable aspect in respect to globalisation is strengthening of vertical division of labour. This happens in the scope of intellectual and other types of activity between particular regions. Specific regions concentrating with intellectual specialisation consider powerful global companies which involve other regions with substantial resources. It is a valid concept which leads to existence of strong relationship between regional economies.
The development of new perspectives that lead to existence of competitive advantages at national level is a fact of local factors and economic initiative. There are basic factors that that shape regional environment which include macro-climate, micro-climate factors and factors which are specific to each person (Javanovic, 1998, p.21). Major considerable attributes in the aspect of macro-climate factors include specific indicators such as regional infrastructure, culture, economic level and political structure. The micro-climate factors relates to the way through which individuals perceive about the surrounding reality. Major considerations of micro-climate factors include visions, action, strategy, efficiency, reactions and success rate. The third category reflects personal aspects such as age, level of education, social status, and gender (Parkinson, 2004, p.56). These are important considerations which provide strong evidence concerning the aspect of international economies. It is through these factors that the regional competiveness of a region is evaluated.
Infrastructure plays a very important role in determination of effectiveness in respect to a regional competitiveness. Engagement in international trade is an issue that is influenced by the fact of well developed infrastructure. This corresponds to establishment of good transportation network which enables for efficient and fast movement of goods from one region to another. Djajic (2000) states that countries wishing to survive in the current competitive regional market are deemed to have a well established road and rail network (p.33). It is a macro-climate factor that has aided several countries to establish a good relationship with other regions through accessibility of raw materials and other resources that promotes regional marketing.
Political structure is another major macro-climate factor that is used as a measure of effective competiveness for countries across the globe. A country with well established political structure has high chances of surviving in the competitive regional markets. The major concept in respect to this fact is proper governance that leads to establishment of good laws that promote international trade. Countries wishing to survive in competitive regional economic markets have to develop policies that promote peace and unity. Working with foreign countries is a challenging issue but through establishment of strong political structures it becomes easy for countries to corporate with others hence allow for free movement of goods and services across the border (Morgan, 1999, p.119). Effective competitiveness thus is measured through the existence of strong political structure.
The economic level of a country is a major considerable factor used to explain effective competiveness of a region or country. Economic situation within a country is a strategic key contributing factor which influences the capacity of regions to make investment decision on local and regional capacity. This means that investors within the country have the capacity to invest in various sectors which results to creation of employment opportunities and improvement of living standards (Caballero, 2005, p.17). Foreign investors also are attracted by well developed and established economies which are not likely to collapse any time soon. This means that regions with well established economies provide foreign investors with the capacity to carry on with regional trade effectively. Countries that survive in competitive international markets are the ones with strong economic structure. According to Sharpe (2007), culture is also another major considerable facto used to measure the competiveness of a country or region (p.201). This is because the purchasing capacity of consumers within a given country depends on cultural practices of consumers. A diverse culture is basically an important tool that attracts investors from regional markets hence it promotes competitiveness of a country.
In the category of micro-climate factors, success rate is a critical factor used to measure effective competiveness of a region. The success rate in respect to economic development, attainment of set goals and efficiency in resource allocation are major factors that measure the success rate of a region. It is also an appropriate factor that is considered by foreign traders to consider whether they are in a position to recognise their goals in competitive regional markets. Other factor that can be used to measure competitiveness of region is the education level. Donald (2001, p. 78) states that the level of education within a region provides one of the most critical attribute necessary to allow participants in regional markets the capacity to communicate effectively and carry on with transactions in an appropriate manner. A country with well established education system offers its people the capacity to engage in fair and free trade. The education system offers the capacity to communicate effectively a basic requirement fro promotion of goods and se...