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Managing Firm Competitiveness in Global Markets

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Author Info

  • Mark Gehlhar

    (Economic Research Service, USDA)

  • Anita Regmi

    (Economic Research Service, USDA)

  • Spyro Stefanou

    (Pennsylvania State University)

  • Barry Zoumas

    (Pennsylvania State University)

Abstract

The globalization profile of US food firms is mixed. US sales from foreign direct investment is now over six times the level of exports, while US processed food trade balance has moved from +$9 billion in 1995 to -$7 billion in 2004. Competitive forces drive firms to seek new areas of growth, with either portfolio expansion or penetration and expansion in new markets. Although the forces that weigh heavily on a firm are recognized, their influence in determining a firm’s action in choosing a particular strategy is not well understood. As the nature of food manufacturing is evolving and the operational scope of a food manufacturing firm has grown from local, to regional, national, and global, is there a new role for policy? What we do know is that a firm trades with other firms and that aggregate trade patterns do not fully reflect how firms view prospects, make decisions and factor in policies as they organize themselves for trade. Addressing the potential characterizations of competitiveness for the industry and the firm followed by the conflicting influences of R&D on competitiveness, we focus on what is meant by a global food firm with the use of the experiences of three industry case studies.

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Bibliographic Info

Paper provided by University of Crete, Department of Economics in its series Working Papers with number 0714.

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Length: 14 pages
Date of creation: 16 Jun 2006
Date of revision:
Publication status: Published in USDA & AIEA2 International Meeting, Competitiveness in Agriculture and in the Food Industry: US and EU Perspectives, Bologna, Italy (2006)
Handle: RePEc:crt:wpaper:0714

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Keywords: Competitiveness; Food Manufacturing; Globalization; Case study;

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References

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  1. Bernard, Andrew B. & Bradford Jensen, J., 1999. "Exceptional exporter performance: cause, effect, or both?," Journal of International Economics, Elsevier, vol. 47(1), pages 1-25, February.
  2. John R. Baldwin & Wulong Gu, 2004. "Trade Liberalization: Export-market Participation, Productivity Growth, and Innovation," Oxford Review of Economic Policy, Oxford University Press, vol. 20(3), pages 372-392, Autumn.
  3. Andrew B. Bernard & J. Bradford Jensen & Peter K. Schott, 2005. "Importers, Exporters, and Multinationals: A Portrait of Firms in the U.S. that Trade Goods," Working Paper Series WP05-10, Peterson Institute for International Economics.
  4. Andrew B. Bernard & J. Bradford Jensen, 1999. "Exporting and Productivity," NBER Working Papers 7135, National Bureau of Economic Research, Inc.
  5. Andrew B. Bernard, 2004. "Exporting and Productivity in the USA," Oxford Review of Economic Policy, Oxford University Press, vol. 20(3), pages 343-357, Autumn.
  6. Hoekman, Bernard & Smarzynska Javorcik, Beata, 2004. "Policies facilitating firm adjustment to globalization," Policy Research Working Paper Series 3441, The World Bank.
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Citations

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Cited by:
  1. Herciu Mihaela & Ogrean Claudia, 2011. "Interrelations Between Economic Freedom, Knowledge Economy And Global Competitiveness – Comparative Analysis Romania And Eu Average," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 6(2), pages 46-59, August.
  2. Mihaela Herciu & Claudia Ogrean & Lucian Belascu, 2012. "Leveraging tangible and intangible assets by using a possible firm competitiveness index," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 14(1/2), pages 115-124.

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