Course: “International Business Environment”
The task Topic:“Ukraine in the Global Competitiveness report”
(1) Describe the basic methodology of the most recent issue of the GCR available: http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2012-13.pdf.
The Global Competitiveness Index is computed according to World Economic Forum’s methodology. It (methodology) is based on the combination of general public statistic data and results of global interview of different companies’ CEOs. This annual research is run annually by World Economic Forum together with a range of partner public organizations. The research started from 2004, every year the number of analyzed countries grows. In 2012 the number of analyzed countries grew for 6 new countries compare to the previous year and it became 144 (6 more, but 2 less). The WEF defines the national competitiveness as the ability of the country and its institutes to provide stable rates of economic growth in mid-term perspective. GCI is based on 112 indexed. 28 indexes are calculated basing on statistic data, others – basing on medium and big companies’ CEOs grades and evaluations. These 112 indexes are combined in 12 factors of competitiveness (12 pillars), which describes competitiveness of different counties with different level of economic development. All countries are divided into 5 different stages of economic development (main 3 stages + 2 transition stages). The key criterion for putting a definite country to a certain group is the GDP level per capita. Figure 1 shows the division of pillarsinto 3 main groups: factor driven, efficiency-driven and innovation-driven economies. (Source: http://reports.weforum.org/global-competitiveness-report-2012-2013/ page.7) The Factor-driven economies (1st stage of development) compete basing on endowments. On the 2nd stage efficiency-driven economies grow its competitiveness through the implementation of more efficient...