Globalization, Competitiveness, International Trade, Industrial Policy and Employement

Abstract

Competitiveness is presented as a variable key in the present context of a worldwide economy and extends its influence over the international trade tendencies, industrial policies and employment.The variations which trade relations at international level have undergone throughout the second half of the twentieth century have been accompanied by successive theoretical contributions, which have evolved from the traditional theories of the nineteenth century concerning comparative advantages and which introduce more complex factors.The product cycle model expounded by Vernon offers an explanation for the continual flow of sectors at international level as well as the characteristics of the most adequate industrial policy and the commercial patterns of each State revealing the importance of technology, human capital and international marketing as key factors for international competitiveness.This article explains the appearance of news procedures of international competitiveness based on product diferentiation, quality and brand image which, nowadays, coexist with traditional models such as costs and prices reductions.At every stage of a country’s development, a sectorial production structure together with some specific demand characteristics, salary and productivity levels correspond to it. All these latter aspects are interelated and should be analysed all together. With globalization, the speed with which a product passes from one phase to another has accelerated as well as the time it travels from the central countries to those intermediate ones and from there successively to those in the South, in such a way that these sectorialswings in international trade should be considered as a normal effect of it. Competition via salary reductions and social security benefits is not the only nor the most recommendable solution given that, in the long term, it affects the quality of production and social stability degrading as it does the standard of living of the population and affecting in this way their personal, political and socio-economic rights.