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Competitiveness challenges for trade and investment : 

Competitiveness challenges for trade and investment Bratislava, 23 November 2005 Daniel Ivarsson Chief, Office for Arab States, Europe and the CIS International Trade Centre Palais des Nations CH-1211 Geneva 10, Switzerland E-mail: ivarsson@intracen.org Telephone: +41 22 730 0390 Website: www.intracen.org

Challenges of globalisation: 

Challenges of globalisation Globalisation: encouragement and opportunity Benefits of trade: specialisation - diversification Long term developments: sustainability Public sector restructuring: change of roles Leadership and know-how: technology, marketing Business ethics: transparency and integrity Risks: measure and manage

Business opportunities from globalisation I: 

Business opportunities from globalisation I Larger, more competitive market for inputs (raw materials, components, specialists; know-how, technology, equipment): increased access to a wider range of cheaper and better inputs Larger, more competitive market for outputs (goods, services): more clients to attract, greater volumes, more space for placing new products - higher turn-over and profitability

Business opportunities from globalisation II : 

Business opportunities from globalisation II Larger number of economic operators: greater possibilities to find matching business partners, investors Increased exposure to best international practice: greater opportunities to learn from clients and competitors, gain know-how and experience Internationally recognised rules, regulations and standards: easier access to other markets, less need for local variants



Key success factor for institutional support: better business environment: 

Key success factor for institutional support: better business environment Better business environment: better business: more turnover, profit; more employment, taxes; highter consumption, welfare - more attractive investment opportunities; more investor interest; more investment

Macro environment measures : 

Macro environment measures Help the business to help itself Facilitate ‘doing business’ items: little regulation, simple requirements, simple decision criteria, simple procedures, quick processing, predictable decisions, fairness & transparency, coherence Public-private partnership: consultation, not control Analyse value chains - help restructure the markets Improve business infrastructure

Business support measures : 

Business support measures Easy, cheap access to trade and investment information Enterprise/project specific advice - best provided by specialised entities, especially consulting sector Investors and partners look at project profitability, business environment: if OK, they will invest Subsidies, tax breaks, etc.: often a zero-sum game Privileges lower general wealth, are not sustainable

Key success factors I for investors and exporters : 

Key success factors I for investors and exporters Know your firm: address its shortcomings Know your markets, your competition - fill info gaps Ensure profitability - one loss and you are dead Modest plans brilliantly executed give success Focus on quality - less waste, better productivity, less guarantee calls: production costs lower; better reliability, better function, longer service life: clients more satisfied, prices higher

Key success factors II for investors and exporters : 

Key success factors II for investors and exporters Use available business support - value it properly, select carefully, be prepared to pay for quality services Know your rights, respect the rules, help create a good business environment - ask for what you are entitled to, insist on fair treatment, participate in consultations, offer constructive solutions

Key success factors III for investors and exporters : 

Key success factors III for investors and exporters Improve value of the product to the client Match your competitive posture to client expectations Differentiate products, create & exploit market niches Reduce costs Make your competitors irrelevant: invent new, high-value, low-cost products, find untapped market potential

The International Trade Centre: 

The International Trade Centre The International Trade Centre (ITC) is the joint technical cooperation agency of the United Nations Conference on Trade and Development (UNCTAD) and the World Trade Organization (WTO) for trade development in developing and transition countries

Goals and role of ITC: 

Goals and role of ITC Help integrate into the multilateral trading system Support creation and use of trade development strategies Strengthen trade support services Improve sectoral performance Build enterprise competitiveness

ITC facts and figures: 

ITC facts and figures What we do Trade-related technical assistance aimed at the business sector of developing and transition economies. Who we are Over 200 permanent employees and over 800 specialized consultants. Who funds us UN and WTO (50-50) fund our basic needs. Governments (donors, recipients) and civil society organizations fund specific projects and programmes implemented in the field. Where we are Headquartered in Geneva, Switzerland.

ITC’s response to trade and investment challenges: programmes, tools: 

ITC’s response to trade and investment challenges: programmes, tools Strategic and operational market research Business advisory services Trade information management Export training capacity development Sector-specific product and market development Trade in services International purchasing and supply chain management

ITC’s programmes and tools (contd.): 

ITC’s programmes and tools (contd.) South-south trade development Export-led poverty reduction Enterprise management training E-trade for SMEs Legal aspects of international trade ….. and many more, presented in our Compendium of Tools, Services and Programmes, available on the ITC website

Multilateral Trading System – training and networking: 

Multilateral Trading System – training and networking Facilitation of contacts, exchange of experiences Reinforcement of private/public sector WTO interface Information and networking events Advisory and training services on WTO and business National networks of trainers/advisers

Quality & environmental management: 

Quality & environmental management Accreditation and certification schemes, facilitation of mutual recognition agreements Training of assessors, auditors Enquiry points for technical barriers to trade / sanitary and phytosanitary issues (TBT/SPS) Quality management in the enterprise Marking, packaging

Trade financing: 

Trade financing Teaching clients about access to trade and investment finance: how to deal with banks Teaching banks how to work with traders and investors Capacity building in trade financing schemes, credit insurance e-banking, payment transfers

Trade promotion: 

Trade promotion Buyers-sellers meetings; matchmaking events Promotion of intra-regional trade Trade flow analysis, supply and demand surveys Support to trade promotion organisations Training

Trade information: 

Trade information Trade information management know-how, training Trade information data bases Market access data Product data Market data Trade agreements data

Management training, consulting: 

Management training, consulting Management know-how for trade development Gap analysis of trade support services Capacity building for management training organisations Training of trainers and advisers

Purchasing & supply management: 

Purchasing & supply management Inputs – a major cost item International purchasing & supply management Analysis; diagnostic tools Training, transfer of skills Training materials, their adaptation Institution building; PSM associations

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