ECONOMIC BARRIERS AND COMPETITIVE ENVIRONMENT – SOME CONSIDERATIONS
ECONOMIC BARRIERS AND COMPETITIVE ENVIRONMENT – SOME CONSIDERATIONS

Summary/Abstract: Global business sectors are characterized by competitors who operate globally. Except the United States, companies and governments in the country of origin should be considered together when one resorts to competition analysis. Between companies and governments in their countries complex relationships are been established, involving various forms of regulation, subsidies and other forms of assistance. Governments of countries of origin were often targets of such employment and balances of payments, which are not strictly economic, viewed from the perspective of the firm. Sectoral policy objectives of government can set up companies, providing funds for research and development and, in many respects, the influence of their position in global competition. Origin country governments can negotiate the home for business in global markets (e.g. construction of complex aircraft production), financed by central bank sales (agricultural products, products for defense, ships) or apply political leverage to defend the other self-interested ways. In some cases, the government is directly involved in the company that owns, partially or completely, the firm. A consequence of this support could be to increase exit barriers.

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