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SHORT ARTICLE

BY

CUTA SOSA KEVIN STEVEN

PERAZA JIMÉNEZ PAULA STEPHANY
RAMIREZ RODRIGUEZ VALERY STHEPHANY
TORO PEREZ KATERIN VALERIA
VALERA JINETE MARIA FERNANDA
VEGA VEGA HEIDY MILENA

TUTOR
PAOLA ANDREA MÉNDEZ COTRINO

POLITECNICO GRANCOLOMBIANO UNIVERSITY

GLOBALIZATION AND COMPETITIVENESS
2023
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SUMMARY

Globalization is the integration of the economic, political, technological, cultural, and

social fields that have generated great changes worldwide, driving challenges and strategies that

allow each country to position itself.

The concept of competition is the legitimate principle that benefits the development of a

nation and its growth through the production and commercialization of goods and services.

As part of planning each territory, it is necessary to analyze the competitiveness that

allows knowing internally or externally its evolution, risks, and opportunities.

The World Economic Forum (WEF) uses methodologies that allow measuring nations

and thus, managing the behavior of the 12 competitiveness factors within the international

economy.

In this essay, a comparative analysis is made of the state of competencies between

Colombia and the United States through the Global Competitiveness Index which generates an

annual report and involves the 12 pillars that measure the growth of the countries involved.

This work aims to observe the differences between the two countries from the 12

indicators that offer a broad overview of the level of productivity and its progression. This will

allow evaluation of the progress of each country’s system, creating awareness of the

development and profitability.

GENERAL OBJECTIVE

Make a comparison between the United States and Colombia using as a base the 12

pillars of the Global Competitiveness Report. In order to understand the main differences

between these countries in terms of globalization and competitiveness. 

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SPECIFIC OBJECTIVES

• Investigate the principal institutions of each country in order to determine which country

has the best quality in health, education, and transport and the reasons for this.

• Understand the reasons for the market size and principal exportation of each country.

• Analyze what things can each country learn from each other to improve their own

systems and globalization and competitiveness.

INTRODUCTION
 
Globalization allows countries to exchange ideas and products in order to enter into

international business. Consequently, according to the conditions or limitations exercised by

each country, there is the possibility of the withdrawal of tariffs and import or export taxes in

order to boost the trade of nations.

In this way, competition is generated within the different locations worldwide and in turn,

causes pressure to improve productivity and satisfy customers with their services.

In competitiveness there are 12 pillars which are:

Institutional, Infrastructure,Within Macroeconomic Environment, Health and Primary Education,

Higher Education, Efficiency of Goods Markets, Labor Market, Financial Market Development,

Technological Readiness, Market Size, Business Sophistication and Innovation.

The pillars are rated from 1 to 7, with 7 being the highest number, and represent the

assessment of the level of competitiveness of the countries set forth by the World Economic

Forum (WEF).
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Within the World Panorama, Colombia and the United States are analyzed mainly from the

perspective of the 12 pillars of competitiveness, making a comparison in order to understand the

main differences between the countries in terms of globalization and competitiveness.

Macroeconomic Environment:
In each country there is a set of variables that can impact the economy and enterprises in a
determined place. Between that trends that affects this are the fiscal policy, gross domestic
product, percentage of employment, consumers spending, inflation, and monetary policies. All
this thing affects how things like interest rates, which directly impacts consumers, enterprises,
and investors.
Health and primary education:
In this dimension is analyzed the quality and coverage of two of the most important areas for a
human to have a decent life that are health and primary education. In this case there is an index
that measures this by country and determines the quality of life of the citizens, it is called
“Human Development Index” (HDI).
Higher Education and Training:
However, for being able to reach a higher level of development and competitiveness it is
necessary that people can reach a higher level of education and also this must have a good
quality. This can be measured with the HDI because this takes into account the average years of
education in a country. It also refers to the amount of training that an enterprise offers to their
employees. If it is a high amount of training, the enterprise is better prepared for new things and
also can develop new ideas.
Goods Market Efficiency:
Market efficiency is the degree of measurement in prices in the market that showsimportant infor
mation. It can be said that if a country's market is doing well, this country would be in
a good position
in the world market, since there is no increase in the price ofits product or fall in its prices.
This means that the efficiency of the market is the capacity in which a country
can face theworld, if it is possible to invest in that country
or it is not good to do it. How the US markets are or are not efficient compared to the world.
 
Labour Market Efficiency: 
In this pillar, the importance of properly choosing the workforce for any market or economic sect
or is described. If the work team or human
capital is properly chosen for theindicated sector, according to the capacities of each person,
a better result will be achievedand the economic sector will be
more efficient. The opposite would happen if the rightpersonnel are not chosen or if they do not 
do adequate training, this could cause problemsfor the economic sector.
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It will also depend on the person's place of work, if it is a suitable place for his work and ifhe feel
s comfortable, if the person does not feel well, his work will probably not be efficient and thus th
e market will begin to be affected.
Financial Market Development: 
The Financial markets are an important component in the transmission of monetary policyand pl
ay a key role
in fostering financial stability. The right one development can improvethe ability of the financial 
system to seek financing and increase consumption in
a givenmarket.  An efficient financial market is one with proper depthand breadth, that is on the s
upply side, there is a wide rangeof financial instruments, offering choices of issuers, creditrisks,
and etc.
A liquid financial market also enables central bank toefficiently conduct its day-to-day operation
s to attain itsinterest rate target. 

Technological Readiness
TRLs or Technology Readiness Levels refer to thedifferent levels of a method that measures the 
degreeof maturity of technologies.
To determine a technology's TRL,
a TechnologyMaturity Assessment is performed, which examines various elements such as progr
am concepts, capabilities and technology requirements. The TRL ofeach technology is determine
d on a scale of 1 to 9, where 9 is the most mature technology, i.e., it is readyto go to market and
be commercialized.
 
Retrieved fromhttps://www.nasa.gov/directorates/heo/scan/engineering/technology/
technology_readiness_level 
 
Market Size - 
Market size refers to the total number of buyers orconsumers in
a specific market category. Market sizeis an important element of business planning in variouspr
ofessions, such as marketing, sales and businessconsulting,
as well as for many investors prior toinvesting in a new venture.
 
Retrieved from https://www.indeed.com/career-advice/career-development/what-is-market-size
Business Sophistication
Business Sophistication refers to two closely linkedelements: the quality of a country's set of bus
inessnetworks, and the quality of the operations and strategies of individual companies.
Indicators measured:
- Quantity and Quality of local suppliers.
- State of cluster development
- Nature of competitive advantage
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- Extent of the value chain
- Control of international distribution
- Sophistication of the production process
- Extent of trade promotion
- Willingness to delegate authority

 
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KEYWORDS

Globalization, Competitiveness, Underdeveloped Countries.

Reference

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