Competitiveness is the ability of a country's environment to sustain value added creation.
In theory, every nation is free to define its own economic and social approach to managing competitiveness. However, in reality, regional and international agreements limit the margin of maneuverability that nations have. Economic policies and business rules are being harmonized worldwide with a strong emphasis on market economics. From a social point of view, nations have preserved more sovereignty. They live by their own particular value systems according to a social consensus based on their traditions, their degree of economic development, and their religious and philosophical beliefs.