3. To what extent has the ability of governments to improve economic Essay

3. To what extent has the ability of governments to improve economic performance diminished over the last two decades Analyse the efforts of the state to impro - Essay Example overnments do not have control over their populations, as crime syndicates control the economy, making it impossible for the government to improve the conditions of the majority. These issues are significant because they prevent many governments from looking out for their own country’s interests and forcing them to go along with the ideologies of others, which prevents them from improving the country’s economic performance, as â€Å"recently, many have argued that competitiveness is strongly influenced by government policyâ€Å" (Porter, The Competitive Advantage of Nations, 4). Michael Porter’s five forces of competitive analysis are the bargaining power of customers, the bargaining power of suppliers, the threat of new entrants, the threat of substitute products, and the intensity of competitive rivalry. This theory can be applied to how governments improve the economic conditions of their country in a variety of different manners, mostly due to their interactions with other countries, as â€Å"government actions can also dramatically increase or decrease the likelihood of international competition† (Porter, Competitive Strategy, 181). International trade is something that will always be debated because it is interesting to see who has the advantages and why. The most common manner by which to explain the advantages that certain countries have over others in trade in by using a comparative advantage model. There will always be different scales because of the various differences between countries’ finances, education levels, population, demographics, resources, and other factors. China, where â€Å"economic liberalization has registered great success without substantial political reforms,† (Feng 252) is a country that has traditionally been used for its labour, due to its extremely high population and its lack of good paying jobs. The variable in this situation is that Chinese companies are beginning develop their own products for distribution, which is a direct