Trade competitiveness: approaches of assessment (The case of Armenia)

Sargsyan A

Abstract

Competitiveness is a relative concept and leads many to see competitiveness policy as a zero-sum game. Improving competitiveness is the process of creating appropriate conditions that allow an economy to allocate scarce resources where opportunities arise as external and internal conditions change. Thus, the analysis and assessment of a country’s international trade competitiveness becomes an important issue. In this regard, creation of not only bilateral but also multilateral trade relations with different countries and integration units become essential to create and maintain comparative advantages. Moreover, development and diversification of the export potential of the country is one of the most important directions of the international trade policy of the authorities. As a consequence, thorough analysis and not only quantitative, but also qualitative assessment of the role of international trade in maintaining competitiveness becomes an important issue. This allows to determine how certain factors influence on the formation of export capacity in the country. The objective of the paper is to determine the importance of trade competitiveness in the process of competitive advantages formation. The most outstanding feature of the research is that its main findings and conclusions arising from it can be used in assessing trade competitiveness of different countries or groups of countries. The outcomes and implication of the research can be used to improve the competitiveness of goods and services in the global market.