Economic Barriers and Competitive Environment - Some Considerations

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.JEL Codes: D40; F10Keywords: environment; companies; competition analysis; firm1. IntroductionCertainly the concept of competition has been and will be a challenge for all students in economic environment in general and business activity in particular. The essence of strategy formulation is the approach to competition. But it is easy to consider competition in a too narrow and too pessimistic way. Fierce competition in an industry is neither a coincidence nor luck, although managers complain of the opposite (P. 2008: 23).From the perspective of competitive environment, both economic theory and practice have shown and demonstrated that there are many factors that influence it in different proportions, in its analysis and operating mechanisms.2. Analysis of Global Competitiveness IndexWorldwide, according to The Global Competitiveness Report, three main areas of analysis with different degrees of impact on the global competitiveness index analysis are considered. They are:1) Basic requirements with a share of 40%;2) Efficiency promoters with a share of 50%;3) Innovation and diversification factors accounting for 10% of the total index of competitiveness (TGCR. 2011: 304).Definitely, in analyzing these indexes, the factors disseminating is the best form for understanding the concept of competitiveness from a practical perspective. Thus, in the first factor (basic requirements) the most important elements are: institutions, infrastructure, macroeconomic environment, health and primary education.A summary approach of the institutional components must emphasize that we can not fail to notice some of them that could cause fluctuations in the competitive environment and determine mechanisms in terms of competitive potential. Such ownership or intellectual property protection is the foundation of development and gain competition in a market economy. On the other hand, misappropriation of public funds, bribery, mistrust in politicians and public institutions, irregular payments made by businesses in turn causes a negative impact on the competitive environment. Addressing these elements in a more transparent and lucid perspective, it would certainly lead to an increase in firms' competitive potential and, why not, an increase in national competitive advantage. We can not tackle this analysis without taking into account the involvement of government action that from the point of view of specialists can investigate issues of favoritism in decision of government officials, in wasteful government spending and regulatory burdens of government. Of course, transparency of government policies reflects an important component in assessing and strengthening the competitive environment. …