Chair of Global Economy & Foreign Affairs Olga V. Korneiko Phd, Senior Lecturer

1. Chair of Global Economy & Foreign AffairsOlga V. KorneikoPhd, Senior Lecturer Course :The Competitiveness of national economies Lecture 1: Introduction. Framework of Competitiveness VSUES

2. You are highly encouraged to take notes during the lecture!

3. The questions: • Why do nations compete? • What kind of problems do national economies have to resolve to improve their international Competitiveness? • Do competitive firms come from competitive nations ? • How do we measure Competitiveness? • Are there any differences between firm Competitiveness and national Competitiveness? • What determines Competitiveness of nations today? And what will determine it in the future?

4. The questions for you: What do you know about Competitiveness? What do you think it means? What famous names come to your mind when you hear the term Competitiveness?

5. Competitiveness is still one of the most misunderstood concepts. What do you mean by Competitiveness?

6. 1983 -1987 The term Competitiveness appeared more than 5700 times. Competitiveness

7. Competitiveness on macroeconomic level • Competitiveness as productivity; • Competitiveness as capacity to create well-being; • Competitiveness as ability to sell on external markets.

8. Competitiveness on macroeconomic level • Competitiveness as productivity; • Competitiveness as capacity to create well-being; • Competitiveness as ability to sell on external markets.

9. Michael Porter and World Economic Forum: • The national Competitiveness as a set of factors, policies and institutions that determine the level of the productivity of a country.

10. United States • Population: 313,232,044 (July 2011 est.) • GDP per capita: $ 48,112 (2012) • GDP: $15,290,000,000,000 • Number of Billionaires: 442 Rankings of National Economic Competitiveness • Rank 2 from the International Institute for Management Development (2012) • Rank 7 from the World Economic Forum (2012-2013)

11. Why is the US competitive? Structural features US companies are highly sophisticated and innovative Excellent university system Flexible labor market Largest sheer size of its domestic economy in the world

12. Competitiveness on macroeconomic level • Competitiveness as productivity; • Competitiveness as capacity to create well-being; • Competitiveness as ability to sell on external markets.

13. European Competitiveness Reports (European Commission): • Competitiveness as high and rising standards of living of a nation or a group of nations with the lowest possible level of involuntary unemployment, on a sustainable basis.

14. Competitiveness money? Most people think that rich countries are competitive and poor countries aren’t.

15. Poorest Countries in the World

16. Richest Countries in the World

17. Countries with the Most Billionaires

18. Brunei Capital: Bandar Seri BegawanPopulation: 408,786GDP per capita: $50,000GDP: 21240000000.000Rank 1in terms of Macroeconomic environment Rank 28 from the World Economic Forum

19. Saudi ArabiaCapital: RiyadhPopulation: 26,534,504GDP per capita: $24,500GDP: 691500000000.000 Rank 18 from the World Economic Forum

22. Competitiveness on macroeconomic level • Competitiveness as productivity; • Competitiveness as capacity to create well-being; • Competitiveness as ability to sell on external markets.

23. Competitiveness is a country’s share on the world markets. Country's share of arms on the world market :

24. OPEC -Organization of the Petroleum Exporting Countries • The countries of OPEC had a high positive trade balance in the 1970s, though they were not highly economically developed .

25. Russia is the world leader on export • oil products, natural gas, nitric fertilizers, cast iron, steel semi-finished products, nickel, aluminum, the round wood — the 1st place in the world on each of goods; • oil, arms, the timber, the mixed fertilizers, ammonia — the 2nd place; • coal, newsprint, synthetic rubber, potash fertilizers — the 3rd place

26. Russia Capital: MoscowPopulation: 142,517,670GDP per capita: $17,000GDP: 2414000000000.000 Rank 69 from the World Economic Forum

27. China Racing Ahead of U.S. in the Drive to Go Solar

28. Paul Krugman is an American economist. Nobel Memorial Prize in Economics (2008) Krugman sees the Competitiveness of the national economy as a dangerous obsession

30. Competitiveness on microeconomic level • States and companies should be viewed equally . • The productivity of an economy is the sum of the productivity of firms in the economy. • You can't have a competitive economy unless firms are competitive.

31. How Native Fijian People started Fishing Business

32. Operating expenses include: • vehicle expenses (fuel, oil for boat) • license fees • maintenance and repairs (fishing gear) • crew salary • supplies • utilities, such as telephone • insurance • property taxes • etc

33. Fiji Capital: Suva (on Viti Levu)Population: 890,057GDP per capita: $4,700GDP: 4186000000 (2012) 3818121194 (2011)

37. Competitiveness is the degree to which a nation can, under free and fair market conditions, produce goods and services that meet the test of international markets while maintaining or expanding the real incomes of its citizens. • конкурентоспособность определяется тем, насколько нация может в условиях свободной и честной конкуренции производить товары и услуги, которые отвечают запросам международных рынков, одновременно сохраняя на прежнем уровне или увеличивая реальные доходы своих граждан.

38. TODAY IS THE FIRST DAY OF OUR COURSE How do you feel? Excited and confident? Or maybe a little confused?

39. If you think you might have problems, don’t worry. We’ll try to resolve these problems together

40. Now I’d like to hear your FEEDBACK. Write down a short feedback about the lecture Send me an e-mail at olga30300@mail.ru

41. THANK YOU FOR YOUR ATTENTION olga30300@mail.ru +7- (423)-240-4193