I. The international competitiveness of U.S. natural resource industries and manufacturing industries
After World War II, the economic strength of the United States was further strengthened, and during the period from the 1950s to the 1960s, some of the U.S. industries entered the international market, and the productivity jumped to the top of the world's countries, and it began to establish its position as a global manufacturing center, and then became a hegemony of the global economy.
The share of products in the international market can reflect the international competitiveness of industries producing similar products from one side. According to Michael? Porter's products in the international market share statistics, in the early 1970s, listed in the international market share of the top 50 U.S. industries, not only a high degree of dependence on natural resources of the United States of America's traditional industries (such as soybeans, rice, wheat, coal, etc.), but also a representative of industrialized societies, such as airplanes, computers, electronic tubes, organic chemicals, office services, such as machines and other technology-intensive industries and capital intensive industries. industries, demonstrating the diversity of U.S. industries of strength. (Note: Michael Porter, National Competitive Advantage Porter: National Competitive Advantage (Chinese edition), Huaxia Publishing House, 2002 edition, p. 275.)
To 1985, more than 10 years later, from the point of view of the U.S. industries included in the top 50 international market share, the U.S. industry's dominant industry pattern has not changed much, that is, the natural resource industries (such as corn, sugar beets, tobacco, etc.), and technology and capital intensive industries (such as airplanes, medical equipment, etc.) are still coexisting. Compared with the early 1970s, the United States and other countries gradually upgraded the structure of exports in stark contrast to the United States, in the inclusion of the top 50 international market share of U.S. industries, natural resources-based industries increased from 19 to 22, natural resource-based industries accounted for the proportion of exports to the total exports reached 24.2, much higher than Japan and Germany. (Note: Michael Porter, National Competitive Advantage Porter: National Competitive Advantage (Chinese edition), Huaxia Publishing House, 2002 edition, p. 498.)
The biggest change in the U.S. economy since 1985 has been strong growth, and as a result the U.S. has regained its confidence as an economic powerhouse. in 2000, U.S. merchandise trade exports accounted for 12 percent of total world exports, and there were 43 categories of commodities with market shares higher than this ratio (see Table 1), which were highly competitive relative to other U.S. exports, and which accounted for 64.8 percent of all exports that year. Of the 43 categories of goods, eight belonged to industries dominated by natural resources.
Table 1 U.S. Commodities with Strong International Competitiveness in 43 Categories in 2000
SITC Commodity Category Name Order World Market
Share (%)
263 Cotton 1 48.4
598 Other Mixed Chemical Products 2 42.5
222 Soybeans, Peanuts 3 42.1
792 Aircraft and parts thereof 4 36.8
714 Engines and parts thereof 5 32.1
774 Electrical equipment for medical purposes 6 30.2
874 Apparatus for measuring and analysis 7 29.2
723 Machines and parts thereof for construction purposes 8 28.0
122 Tobacco 9 25.0
541 Pharmaceuticals 10 24.5
041 Wheat 11 24.0
728 Industrial Processing Machinery and Parts 12 22.1
784 Automobile Parts, Accessories, and Others 13 21.9
251 Pulp 14 20.9
625 Rubber Tires, Tubes, and Others 15 20.5
081 Feed, Soybean Meal, Vegetable Oil Dregs 16 20.3
713 Internal Combustion Engines and Parts Thereof 17 20.0
743 Blowers, Compressors, Centrifuges, etc. 18 19.1
582 Phenolic, Polyester, and Other Recompositions 19 18.9
892 Newspapers, Magazines, Tickets and Other Printed Materials 20 18.8
< p>011 Meat of food animals 21 18.5699 Metal ornaments for locks, decorative purposes and furniture 22 18.0
741 Apparatus and parts thereof for heating or cooling 23 17.7
776 Vacuum tubes, transistors, integrated circuits 24 17.4
511 Hydrocarbons and their inductors 25 17.3
898 Musical instruments, audio-visual recording media 26 17.1
752 Automatic data-processing equipment 27 16.9
745 Other non-electrical machinery and tools 28 16.8
759 Appurtenances and parts of 751, 752 29 16.6
744 Machinery for lifting and other handling of articles 30 16.5<
736 Metal Processing Machinery and Parts 31 16.2
893 Other Man-Made Plastic Products 32 16.1
772 Circuit Switching and Connecting Devices 33 15.3
057 Fruits 34 14.2
773 Power Transmission Devices such as Cables, Insulating Materials, etc. 35 13.5
583 Polyethylene and other inducers 36 13.4
651 Textile yarn 37 13.0
778 Other electrical equipment 38 12.8
749 Bearings and other parts of non-electrical machines 39 12.4
782 Lorries and special vehicles 40 12.4
771 Transformers, rectifiers and other electrical components 41 12.1
515 Organic compounds 42 12.1
514 Nitrogen compounds such as glutamic acid, saccharin, etc. 43 12.1
Source: author's calculations based on data from the United Nations International Trade Statistics Yearbook 2000.
It should be noted that Michael Porter uses the term "international trade". Porter is using the "Standard International Trade Classification" (SITC) 4-digit and 5-digit classification data. As the United Nations "Yearbook of International Trade Statistics" since 1994 only published 3-digit classification data, based on this data calculated international market share is generally lower than Michael? Porter's calculations, Table 1 cannot simply be compared with the early 1970s and 1985 data mentioned above. Nonetheless, Table 1 illustrates that the dominant industries that form part of the competitive advantage in the United States today are still concentrated in natural resource-based, technology-intensive, and capital-intensive industries.
Table 1 compared with the U.S. 1985 data, competitiveness is highlighted: SITC263; competitiveness is enhanced: 122, 541, 774; competitiveness remains basically unchanged: 222, 792, 874; competitiveness declined: 651; competitiveness is lost: 321 coal and coke, 241 logs, which used to be the 1985 U.S. dominant industry. year's dominant U.S. industries.
In Table 1, there are 14 categories of commodities (i.e., 598, 874, 728, 784, 713, 743, 582, 741, 744, 736, 778, 772, 749, and 782) that the U.S., Japan, and Germany **** have, and they are all the more competitive industries of each of the three countries. The United States has a higher international market share than Japan and Germany in 11 of these 14 categories. This shows that the United States, the world's number one economic power, is based on a broader and more competitive industrial base than Japan and Germany.
The international competitiveness of the U.S. service sector
As with the rising economic status of the service sector in many countries, trade in services plays an increasingly important role in the world economy. In today's, a country's international economic status of the establishment and enhancement of not right through the trade in goods, but also through the trade in services to realize; a country's competitive advantage is not only embodied in the ability to form a competitive manufacturing industry, but also embodied in the ability to form a competitive service industry.
Compared with Japan and Germany, in the United States of America's competitive advantage in the formation of the competitiveness of trade in services is much stronger. The United States is not only the world's largest exporter of trade in services, but also the largest importer of trade in services. In 2000, the U.S. services trade exports amounted to 290.88 billion U.S. dollars, accounting for 19.7% of the world, imports amounted to 217.07 billion U.S. dollars, accounting for 14.5% of the world, and to achieve 73.81 billion U.S. dollars in surplus.
As can be seen from Table 2, the United States has strong competitiveness in many items of trade in services such as travel services, government services, and most other private services trade, which leads to an overall trade in services in which exports are greater than imports. According to Table 2, the United States in the four major categories of trade in services is the most competitive "trade in civilian services other than transportation and tourism", in this type of trade in services, according to the size of international competitiveness, the top five areas of trade in services, in order of magnitude, are cultural and recreational services, construction services, computer and information services, royalties on patents and other services (trade in technology), the United States in the four major categories of trade in services is the most competitive. ).
Table 2 Competitiveness of U.S. Trade in Services in 2000 Unit: billion dollars; %
Exports Imports Import Export/Import Balance Competitiveness
Power Index
Transportation Services 50.95 65.27 -14.32 -12.3
Travel Services 97.45 66.85 30.60 18.6
Trade in government services 18.77 16.01 2.76 7.9
Trade in civilian services other than transportation and tourism 123.71 68.94 54.77 28.4
Telecommunications services 4.09 5.80 -1.71 17.3
Construction services 5.26 0.42 4.84 85.2
Insurance Services 2.41 9.20 -6.79 -58.5
Financial Services 17.04 4.49 12.55 58.3
Computer and Information Services 4.90 1.04 3.86 65.0
Patents and other royalties 38.03 16.10 21.93 40.5
Other Business Services 45.56 31.76 13.80 17.8
Cultural and Recreational Services 6.42 0.13 6.29 96.0
Total 290.88 217.07 73.81 14.5
Competitiveness Index = (Exports - Imports) / (Exports + Imports) x 100
Source: Calculated by the author based on data from the International Monetary Fund (IMF) Balance of Payments Statistics Yearbook 2001.
Cultural and Recreational Services
The United States, despite its short history, has contributed many works to mankind in the fields of dance, music, movies, and theater that have been enjoyed by young and old alike and have flourished for a long time, such as imaginative modern dance, Disneyland and related products that have brought joy to children of all countries, "Hollywood" Movies" and so on are popular all over the world. The spread of American culture and entertainment services in the world has not only brought the United States rolling financial resources (for example, Hollywood movies account for more than 80% of the world's box office receipts), but also through this cultural export, the United States has a more consolidated and enriched competitive advantage.
Construction services
The industrial revolution centered on steel pushed the development of architectural engineering in the U.S. The invention of the elevator and reinforced concrete led to the emergence of America's first architectural form, the skyscraper, which is considered to embody the American spirit. Since then, the United States has always relied on advanced design concepts and high technology, always standing at the forefront of world architecture. At present, the United States has the world's largest architectural engineering firm, bringing together the world's top architects (such as I.M. Pei, etc.). In recent years, countries generally attach importance to urban construction and city image, many countries' cities have funded Americans to design their iconic buildings (such as Shanghai's Jin Mao Tower, Tokyo's International Forum Plaza, etc.) or entire neighborhoods.
Computers and Information Services
Since the mid-1940s, the world's first desktop electronic computer, the first semiconductor transistor, and the first integrated circuit have all been born in the United States, and thus the United States has been a world leader in information technology. The development of information technology has also led to a huge demand for information services in the United States itself as well as in various countries. Since the 1980s, the U.S. information services industry has maintained a double-digit growth rate, becoming one of the fastest-growing industries in the United States. The U.S. government is also to enhance the international competitiveness of the information services industry to pay special attention to the GATT and later the WTO and other multilateral negotiations, the United States has been for the information services industry to break through various restrictions on unremitting efforts. Computer and information services in the largest category is the computer professional services, which can be further divided into computer systems integration, user-specific program design and professional consulting and training, the United States in these three areas of strength are the world's strongest.
Financial services
Compared with European national banks, which have a long history of international finance, U.S. banks started their overseas expansion late. After the Second World War, with the United States in the world economy and international finance in the field of hegemony in the establishment of the international financial activities of American banks only in all aspects of the developed countries in Europe ahead of the international financial market to achieve absolute competitive advantage. In the multilateral negotiations of the WTO, the United States utilizes its dominant position in the trade of financial services to, on the one hand, force other countries to develop their financial markets in accordance with the requirements of the United States, opening the way for their own financial institutions to find sources of profit overseas, and on the other hand, focusing on the protection of their own financial markets. For example, in July 1995, the United States refused to grant most-favoured-nation (MFN) treatment to all members and unilaterally withdrew from the Global Agreement on Trade in Financial Services (GATS) because the United States considered that the degree of development of the financial markets of the developing countries was not sufficient to meet the United States' price tag, which resulted in the GATS becoming only a temporary agreement at that time. Among U.S. trade in services, trade in financial services has grown particularly rapidly, from 1986 to 2000, U.S. trade in financial services grew from $5.16 billion to $21.53 billion. (Note: The Annual Report of The Council of Economic Advisers, CEA, Washington D.C (2002.2).)
Patent and other royalties (technology trade) In the era of knowledge-based economy, the pattern of international trade has evolved in the direction of increasing technological content. The improvement of a country's technology trade status can not only improve the country's terms of trade, but also promote the efficient and effective growth of the national economy, optimize the industrial structure and the structure of export commodities, so that the country in the international division of labor is in a favourable position and, in turn, to further promote the country's technological progress. From a macro point of view, the United States of America's science and technology and the economy to realize this virtuous circle. The development of U.S. technology trade cannot be separated from the maturity of its intellectual property rights system. In the 1980s, the Reagan government, in order to "revitalize the United States", introduced a policy called "biased patent rights" (ProPatent Policy), the main content of which is to expand the scope of the rights of patents, and attach importance to the rate of royalties and increase the compensation for infringement. The main content is to expand the scope of patent rights, attach importance to the royalty rate, and raise the infringement compensation fee. This policy institutionally guarantees that the United States maintains its technological competitive advantage.
In Table 2, high international competitiveness of tourism services, this item mainly includes international tourism and education services. In particular, U.S. educational services are much more competitive than tourism because, while tourists from all over the world patronize the United States, a large number of Americans also travel to countries around the world. And U.S. education, especially higher education, attracts international students from all over the world with its free and competitive academic atmosphere. Each year, more than 500,000 foreign students study at U.S. colleges and universities of all kinds, and there are far more foreign students in the U.S. than Americans who go abroad to study. U.S. exports of educational services in 2000 amounted to $10.287 billion, an amount greater than the combined total of traditional U.S. exports of wheat and corn, while imports of education were only $2.14 billion.
The IMF does not publish a detailed breakdown of "other business services" in Table 2, which is similar in meaning to "trade in professional services" in the OECD's trade in services statistics. However, this OECD classification is not complete, and the United States has only partial classification data. Table 3 reflects the competitive advantage of the United States in some of the "trade in professional services", it can be found that the United States in this area of competitiveness is the legal, accounting, auditing and consulting services, which is also consistent with the common sense of the people.
Table 3 Competitiveness of U.S. Trade in Professional Services in 2000 Unit: $ billion; %
Exports Imports Import and Export Balance of Payments Competitiveness
Force Index
Legal, Accounting, Auditing, and Consulting 4.91 2.24 2.67 37.3
Advertising and Market Research 0.41 0.76 -0.35 - 29.9
Advertising and Market Research 0.41 0.76 -0.35 - 29.9 - 29.9 - 29.9 - 29.9 - 29.9 29.9
Research and development
Engineering
Direction in agriculture and mining
Other professional and technical services 3.97 2.20 1.77 28.7
Trade in services within enterprises 28.94 22.44 6.50 12.7
Total 39.01 28.42 10.59 15.7
Source: Calculated by the author based on data from the Organization for Economic Cooperation and Development (OECD) Statistics on International Trade in Services 2001.
Transportation services, insurance services, and advertising and market research are among the few U.S. services trades that lack international competitiveness, and may be related to the fact that foreign service providers in the U.S. are much more competitive and take much of the market share from U.S.-based service providers.
Third, the United States competitive advantage essentials
While each country's national conditions are different, and the competitive advantage of each country varies, but a country's competitive advantage is always composed of a number of factors. According to Michael Porter, the competitive advantage of a country's industry is the most important factor. According to Porter, the competitive advantage of a country's industry consists of four basic factors (factors of production, demand conditions, performance of supporting and related industries, corporate strategy and competitors) and two additional factors (opportunities and government behavior). Limited to space, here focuses on the U.S. competitive advantage from the knowledge and technology-based human resources, business competitive environment, business technological innovation environment and business strategy in four aspects, the author believes that all four aspects will enhance the competitiveness of a country's industry in both supply and demand.
Knowledge and technology-based human resources
Often, people's income level is directly proportional to the level of education or the degree of difficulty of mastering technology, and people's demand for quality of life is also directly proportional to their income level. Therefore, high-quality talents will not only help increase the supply of high-quality products and services, but also increase the related demand.
The United States has been able to maintain its leading position in science and technology and the economy, mainly benefiting from the fact that the United States has consistently emphasized education and human resource development. Since the early 1980s, several presidents have declared their intention to become "education presidents," and businesses have increasingly emphasized training and absorbing talent. With the in-depth development of lifelong education for all, the United States is moving towards a mass knowledge society. One of the signs that the United States attaches importance to education is the continuous increase of investment in education, and the investment in education in the United States has increased from 353 billion dollars in 1989 to 635 billion dollars in 1999, with investment in education accounting for more than 7% of the GDP of the United States, which is one of the highest in the developed countries. President Clinton proposed that after crossing into the 21st century, every elementary school classroom should be networked with the world, and the college advancement rate should reach 25% to meet the needs of the new economic development.
The United States seizes every opportunity to vigorously introduce talents is also a unique competitive advantage of the United States. So far, 4.91 million international students in the United States, accounting for about 1/3 of the total number of international students in the world. more than half a century, the United States nuclear weapons and the development of nuclear technology, the application of computers and the rapid development of the "Apollo" moon program and the implementation of the development of space technology, etc., are in the United States scientists migrated to participate in and even The United States government in 2001 introduced the "Apollo" program and the development of space technology, and so on. In 2001, the U.S. government introduced the "Strengthening American Competitiveness in the 21st Century Act," which aims to further attract foreigners with specialized technology and skills who work in the U.S. but do not apply for residency, covering a wide range of fields such as science and technology, law, and the arts. After decades of efforts, the United States has the world's most, the most advantageous scientific and technological talent, relying on this large group of top talent, Americans have won the most Nobel Prizes, U.S. scientists in the world's major scientific and technological literature published the most papers, U.S. citizens at home and abroad to obtain the most patents.
Competitive business environment
U.S. industries have developed on the basis of mutual competition, and the vast majority of industries face intense domestic competition. The United States is the birthplace of the world's antitrust policy, with strict restrictions on market monopolization, corporate mergers, and uniform market pricing practices.
After World War II, U.S. antitrust legislation as well as practices were adapted to the changing needs of the world economy. Since the period of Reagan's administration, the United States has implemented antitrust policy with greater consideration for the competitive position of U.S. enterprises in the international arena, and viewed mergers as a means of enhancing U.S. international competitiveness, and thus adopted a tolerant attitude toward corporate mergers. During this period, the U.S. Department of Justice no longer pursued monopolies that manipulated prices and divided markets without public agreements. The Department of Justice also withdrew its lawsuit against International Business Machines Corporation (IBM) at that time and reached a settlement with American Telephone and Telegraph Company (AT&T). (Note: Zhang Delin: "Competition and Anti-Unfair Competition - Theoretical Practice of Anti-Unfair Competition Law and Foreign Legal Norms", People's Daily Publishing House, 1994 edition, pp. 194-197.)
Since the 1990s, U.S. antitrust policy has continued the above trend, best exemplified by the case of v. Microsoft Monopoly, considered the largest antitrust case in the U.S. in more than 50 years. (Note: In June 2001, the U.S. Federal Court of Appeals for the District of Columbia issued a ruling rejecting the District Court Judge's decision in June of the previous year to split Microsoft in two, but upholding the judgment that Microsoft had violated the antitrust laws. in November 2002, the U.S. Department of Justice and Microsoft reached an agreement, and the federal court promptly approved the settlement.) From the Microsoft case, it can be seen that, entering the new economic era, the U.S. implementation of antitrust policy further emphasizes the maintenance of the overall international competitiveness of the United States. This is because in the new economic era, simply breaking up monopolies by splitting up businesses does not maintain and improve a country's competitiveness.
Environment of technological innovation
The protagonist of technological innovation in the U.S. is the private sector, which accounted for 72.9% of R&D expenditures and 27.1% of government expenditures in the U.S. in 2000. After a period of relative stagnation in research and development in the 1970s, the private sector's research and development capacity in the United States has grown considerably over the last 20 years or so. Private sector R&D expenditures as a percentage of GDP increased from about 0.8% before 1985 to 1.8% in 2000, and the number of patents for inventions increased from less than 100,000 per year in the early 1990s to more than 150,000 per year in 2000 (Note: The Annual Report of the (Note: The Annual Report of The Council of Economic Advisers, CEA, Washington D.C (2002.2).)
The close connection between the science and technology activities of U.S. firms and the U.S. defense buildup is one of the competitive advantages of the United States that underpins its economic power. From the atomic energy program in the 1940s to the Apollo moon landing program in the 1970s, the huge defense-related programs have not only provided enterprises with objective R&D funds, but also, more importantly, with opportunities to enhance their technological competitiveness. The technological progress brought about by the development of the defense industry has further promoted the development of other manufacturing industries, and today's dominant industries in the United States are more or less related to the U.S. defense, such as the aircraft manufacturing industry, the IT products manufacturing industry, and the telecommunications services industry.
In addition, the adventurous spirit of Americans, the existence of large venture capital firms and financing channels such as the NASDAQ market are also important aspects of the promotion of technological innovation in U.S. enterprises.
Enterprise strategy
American enterprises have maximized the benefits of factor mobility, allocating resources globally through outward investment and attracting overseas investment, a strategy that can be described as a "global factor combination development strategy". (Note: Zhang Youwen, Contemporary National Advantages - Factor Cultivation and Global Planning, Shanghai Far East Publishing House, 2003 edition, pp. 208-222.) The United States is both the world's largest foreign investor and the largest capital-raising country in the world today (with the exception of 2002), with rich multinational corporations in many industries.
U.S. companies are in a stronger competitive position in the global marketplace than any other country. U.S. companies now have some 23,000 majority- or minority-owned subsidiaries in strategically important locations around the world. The strategic goal of most foreign subsidiaries is to produce and sell goods and services to local markets. According to statistics, about 60 percent of the products produced overseas by U.S. multinationals are sold locally and about 30 percent are returned to the United States. (Note: [U.S.] Foreign Affairs, May/June 2001 issue.) The strength of U.S. multinational corporations determines its great influence on the political economy at home and abroad, and U.S. multinational corporations are not only the economic foundation of contemporary U.S. society, but also the main source of its competitiveness.
The success of the U.S. economy in recent years can also be attributed to the radical corporate reorganization and streamlining that has taken place since the 1980s. In the United States, the interests of corporate contributors are more important, which is different from Germany, which attaches more importance to the social benefits of enterprises and Japan, which attaches more importance to the interests of corporate employees. The benefits of the U.S. approach is that enterprises can avoid being trapped in the heavy conflict of interest and can not be extricated so as to compete for the initiative in time, but prone to cause a large number of enterprises to close down and mass layoffs of the phenomenon.
Four, summary -- and the economic power of the competitive advantage of *** sex
Today's world economy is treacherous, a country does not advance or retreat, all countries are not for the formation of their own competitive advantage and in the international economic arena to fight for a place and go all out. Part of a country's competitive advantage is unique to that country, for example, the United States has a wide range of rich land, the world's premier group of military powers, such as the status of the "hard power", including the openness of immigrant countries, the dollar's solid international currency status, cultural and ideological attraction to other countries, as well as the ability to control international rules and mechanisms, such as the "soft power". The "soft power" of the immigrant countries, including the openness of the dollar, the strong international currency status, the cultural and ideological attraction of the immigrant countries to other countries, and the ability to control international rules and mechanisms, are competitive advantages that other countries lack. Nonetheless, an analysis of economic powerhouses such as the United States shows that their competitive advantages are similar in many respects.
First, the implementation of both competition and regulation of the market economy system. Free competition is the most basic operating mechanism of the market economy, through competition, can promote the survival of the fittest, so that the optimal combination of resources, improve the efficiency of the economy. However, competition has a dual nature, and competition without constraints will, in turn, undermine competition. The long-term practice of economically powerful countries has shown that a perfect market economy should not only promote free competition and protect competition, but also regulate competition to make it fair, orderly and benign. Providing a fair competition environment for enterprises to realize orderly and healthy competition in this environment is one of the basic conditions for these countries to improve their competitiveness and maintain a high level of competitiveness, and it is also the starting point for these countries to move towards a strong country.
Secondly, the role of scientific education is emphasized, the knowledge economy is developed and attention is paid to the protection of intellectual property rights. The post-war competitive advantages of most economically powerful countries did not come more from natural gifts, but were formed through the country's unremitting efforts and creativity. In an open economy, the supply of primary factors of production is becoming more abundant and thus plays a diminishing role in economic development. A country can stand out in inter-State competition only if it consistently and creatively develops its higher factors of production over time. The contemporary economic development of the economically powerful countries is not based on a crude economic path that consumes a lot of resources, but on a highly efficient and intensive economic path built on the basis of high-level factors of production, including advanced scientific education, scientific decision-making and strict management.
Thirdly, transnational development of enterprises has become an important strategic link for economically powerful countries to enhance the international competitiveness of their enterprises and thus the competitive advantage of the whole country. Under the background of economic globalization, economic powerhouses generally seize the two ends of the value chain and industrial chain in accordance with the requirements of the value chain and industrial chain, control the core technology and high value-added links, while transferring their manufacturing and assembly capacity outward, developing overseas production bases, establishing an efficient production system oriented to the global development and allocation of resources, and forming a global production system, so as to capture the international market on a larger scale and strengthen the country's national competitive advantages. In this way, they can capture international markets on a larger scale and strengthen their national competitive advantages. At the same time, the economic powerhouse in the open economy under the conditions of the protection of domestic industries, the implementation of the appropriate opening up of our own, not only to maximize the benefits of openness, but also to pay attention to not produce excessive impact on the domestic.
Fourth, the rise of a group of competitive industries in the international market. These industries can be either manufacturing or services. Supporting these industries is the formation of each country's distinctive industrial clusters, many policies in each country is ultimately arranged for the formation of industrial clusters.