* * * Understanding of losses and actual failures. Some systems have managed the global economy without causing instability in the world economy. The currency is unstable, trade is painful, the government seeks refuge for domestic producers, the growth rate slows down and the unemployment rate rises. All this is not because the world cannot produce enough raw materials for population growth or is exhausted, but only because the country has failed to reach a fair system to manage the world economy.
Now, we are living in a period of profound economic change. In the past decade or so, some countries have suffered serious economic setbacks, while others have been very successful.
Today, every country's stock needs to determine how to establish a competitive advantage and face the increasing global economic competition. The experience of successful and less successful economies provides the answer to the question.
First of all, a country must accept open markets and free trade. Evidence of national economic setbacks shows that economic isolation leads to economic stagnation. Access to the international market forces more effectively allocate resources and allow faster access to new production technologies. Promising to open the market sometimes requires accepting short-term difficulties in exchange for long-term economic vitality. Usually, protectionist measures to protect domestic industries not only help those industries whose vested interests are threatened, but also affect the whole country.
Equally important, a country must educate its employees, because the large-scale measures of a successful company reflect the skills of employees. The country's excellent productive labor force will likely support a large number of globally competitive companies.
Finally, a country must have an effective industrial policy. Committed to free trade and education to create conditions and support industries with global competitiveness, but there are no industries such as actual production. Industrial policy is a thorny issue. At its best, it has created new industries and transformed slow-growing local enterprises into world-class competitors. At worst, its waves waste a lot of money.