Sample interview questions: Can you explain the concept of economic competitiveness and its determinants?
Sample answer:
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Economic competitiveness refers to a country’s ability to produce goods and services that are desired in the global marketplace and to sell those goods and services at prices that are competitive with those of other countries.
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Determinants of economic competitiveness include:
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Factor endowments: These are the natural resources, labor, and capital that a country has available to produce goods and services. A country with abundant natural resources, a skilled labor force, and a large stock of capital is likely to be more competitive than a country that lacks these resources.
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Technology: The level of technology that a country has access to can also affect its competitiveness. Countries that are at the forefront of technological innovation are more likely to be able to produce goods and services that are in demand and to do so at a lower cost than countries that are not.
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Institutions: The institutions that govern a country’s economy, such as the legal system, the financial system, and the education system, can also affect its competitiveness. Countries with strong institutions are more likely to be able to attract investment, promote innovation, and ensure that the benefits of economic growth are shared widely.
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Policies: The policies that a government implements can also affect its country’s competitive… Read full answer