Effects of Globalization on National Competitiveness of Entrepreneurs: Opportunities and Threats

Abstract

Predominant role of outsourcing strategy toward technological development and competition in globalization should not be ignored. This competitive process makes especially the nation states that started to undergo liberalization process recently and their sectors and/or firms to adapt to and use innovations in order to survive. The competition for countries can only be a type of incorporation's place for competition. A country's competitiveness depends on factors such as the level of sophistication and productivity of R&D (research and development) activities, performance of the various sectors, country's foreign trade surplus, production of goods that have high-tech characteristics, and availability of skilled and experienced manpower. Some economists advocate that the competitiveness of a national economy is a macroeconomic phenomenon, so it is determined by factors such as interest rates, exchange rates, and budget deficits. Similarly, some economists advocate that the competitiveness can be achieved with cheap and abundant labor force. This study will discuss entrepreneurs' problems in enhancing the competitiveness, which becomes more important because of globalization, and precautions to be taken to reduce or completely eradicate these problems, at micro-and macroeconomic levels. Increasingly intensive economic, political, and cultural relations between countries, mutual interaction of different cultural and social structures within societies, and the collapse of the Cold War walls resulted in globalization. One should also keep in mind the significant role of technological development and competition oriented international trade expansion in the world economy's globalization. Generally speaking, foreign trade policies, financial policies, and economy policies of developed and developing countries form the basis of the globalization. Although many strategists claim that "globalization" is the most frequently discussed phenomenon of our time, came to an end with the September 11 attacks, its impact on every aspect of life, from communal living to  This is the full text of the paper presented at