Theories of international trade and investment

Consumers on the other end will also get quality service from the producers as every producer works to provide the best experience for customers. A competitive market increases the chance of growth in economy of many nations. It makes companies and producers put more resources in market research and production (Porter, 2011). However, the economy of a given country is sustained by the success of its industries and other capital generating sectors. The competitiveness of such countries always depends on the capacity of its industries of being innovative and creative as they work to upgrade themselves. A nation might support competitive advantage by formulating policies which promote competitive advantage for industries. The countries industries should not be overtaxed by the government; this will boost their morale of contacting business without evading to pay the high taxes (Porter, 2011).

This will ensure that companies use less capital output in payment of taxes and debts it might have. Countries can also promote competitive advantage in their countries by promoting and supporting technological research and digital production of company’s products. This will ensure that local companies compete in production of more advanced products (Cho & Moon, 2013). The training of the human resource managers should be of high quality to ensure that there are skilled and qualified human resource managers in the companies. A country with skilled labor has the highly producing and successful industries (Porter, 2011). Countries will enhance competitiveness if they provide highly trained citizens who can also work in the international trade. National competitiveness is very key in the development of a county’s economy.

Competitiveness ensures quality service provision by the companies. Supporting and related industries also act as determinants to national competitiveness. The success of an industry lies in its supporting industries such as the supplying industries which act as the link between the producing companies and the direct market. These supply industries look for a ready market and are very instrumental in the selling of the industry’s products. Related companies which offer resources which are compatible to the products produced by a certain company also influence the success of an industry. For instance, the motor production company will depend on the tire production company to produce tires for the produced vehicles (Porter, 2011). The demand of products at home encourages the companies to invest more and the economy is boosted as the company invests more as the number of customers increases at home.

This ensures that there is competitiveness back at home between the companies (Cho & Moon, 2013). If the demand at home continues to grow then this prompts the company to go international. International customers can be moved by the high numbers of the domestic market to like the products of the company. This ensures competitiveness even in the international market. India serves as good example of a country with great strategic plans towards industrial growth and national competitiveness. The government of India had the best industrial plans which helped revive the country’s economy. The inclusion of foreign technology, privation of public sector and also amendments to monopolies and restrictive trade practices act among others gave industrial triumph and competitiveness a chance in India.