U2 Achieving Competitive Advantage

Question 1

What is economic utility?

Answer 1

refers to a product’s ability to satisfy the needs and wants of customers

Question 2

What factors affect a country’s competitiveness?

Answer 2

• Strengths and weaknesses of a country compared to its competition.
• country’s business climate
• Various criteria, including per capita income, employment statistics, and other factors, are used to assess competitiveness.

Question 3

How does the strength of a country’s currency affect competitiveness?

Answer 3

A weak currency, like Canada’s in the past decade compared to the U.S. dollar, can increase the cost of importing machinery, components, and technology.

Question 4

How does infrastructure contribute to competitiveness?

Answer 4

Canada has strong transportation and communication systems, supporting efficient product distribution and global business communication.

Question 5

How does research and development impact competitiveness?

Answer 5

• the country’s competitive position.
• information technology
• telecommunications infrastructure

Question 6

What role do workforce characteristics play in competitiveness?

Answer 6

Factors such as education level, training, and literacy contribute to a country’s competitiveness

Question 7

How do societal characteristics affect competitiveness?

Answer 7

• Factors like the value placed on quality and productivity at work, healthcare level, and standard of living influence competitiveness.
• Canada’s tolerance, diversity, and ability to attract foreign investment contribute to its competitive edge.

Question 8

How does entrepreneurship impact competitiveness?

Answer 8

entrepreneurs contribute to the economy and international competitiveness by providing business solutions.

Question 9

How does government involvement impact competitiveness?

Answer 9

• tax environment, participation in free trade agreements, and government efforts to expand trade partnerships influence competitiveness.
• political uncertainties in regions like Quebec can affect trade and foreign investors’ confidence.

Question 10

What is opportunity cost?

Answer 10

• the cost and potential benefit of choosing one opportunity over another.
• It calculates the financial value of the next best opportunity foregone or not pursued.

Question 11

What is comparative advantage?

Answer 11

when a company/country becomes more efficient, has better technology, and has easier access to resources compared to competitors.

Question 12

What is absolute advantage?

Answer 12

a situation where a company/country has complete dominance over competitors, enabling it to set prices and policies without fear of competition.