Formulate long-term strategies to stay competitive
The world has recently been rocked by many global shifts. The Trans Pacific Partnership
Agreement will open doors to more than a billion people within the next few years.
More recent is the unfolding events of Brexit, which may see a shift in British trade patterns from regional-based markets to more traditional bilateral and multilateral trade relationships.
Across the Atlantic, the United States is in an election year. Both presidential nominees – Hillary Clinton and Donald Trump have diverse views on how the American economy should move forward, particular in its policies towards the global economy. As America’s foreign and economic policies affect the world, the US elections must be an important point of discussion for the long term planning of our own domestic business environment.
History has shown that despite numerous talks and trends pointing towards a unified market, it is no secret that governments around the globe will prioritise the most important demographic – the citizens. An example is the Kyoto Protocol, an international treaty to reduce greenhouse emissions, signed by the US during the Clinton administration but was never ratified.
This somewhat affected the global automotive industry, as standardised carbon emissions of complying nations rendered them less competitive when a huge market such as the US decides to withdraw.
The aforementioned series of events have also shown that the roadmap towards a free market, an idealised form of market that has been glorified by the West for centuries, can be circumvented when the interests of the majority vote are at stake.
Just as businesses compete to emerge in their market, nations also compete to ensure that their domestic economies are competitive. Nations employ different strategies to ensure that their local industries are provided the fairest chance to gain access into larger markets.
These strategies can be direct, such as trade policies, regulations and agreements; or indirect, such as political alliances, military partnerships, and other administrative strategies. It is therefore important that as a nation, we approach global events with a sound, fair and unbiased mind while analysing its impacts and effects to our sovereignty, security, peace and stability.
To compete at a global level, all stakeholders within the economy must develop long-term strategies, both at the macro and micro levels. With these strategies, we must then be resourceful in dealing with internal and external factors that can impact us socially, economically and politically.
Finally, being competitive requires building a high resilience to external forces, and remaining adaptive to global trends and changes. This is done through a high degree of innovation based on well synthesized and analysed information, as well as a widespread and comprehensive enrollment of solutions across the ecosystem.
The most successful person in life is the person with the best information.