The new shape of global economy which requires growth on a scale never before envisioned. BUT this was in a world where governments could control the movement and ownership of the factors. Today they are mobile, and governments are powerless to control. Thus, what matters is the competitive advantage of a nation. Nations succeed because their home environment is the most forward-looking, dynamic and challenging.
Companies achieve competitive advantage through acts of innovation.
The only way to sustain competitive advantage is to upgrade it - to move to more sophisticated types. Competitive Advantage of Nations is NOT measured by net profits. Seek out new markets 4. Seek lower cost factors of production 5. A firm s manufacturing share can be bigger than its own branded share since it makes brands for other sellers.