Based on The Global Competitiveness Report 2019 (World Economic Forum), which of the following Pillars of the Global Competitiveness Index need to be improved most urgently in China?i) Institutions: Security, property rights, social capital, checks and balances, transparency and ethics, public-sector performance and corporate governanceii) Product market: The extent to which a country provides an even playing field for companies to participate in its markets. It is measured in terms of extent of market power, openness to foreign firms and the degree of market distortionsiii) Labour market: The extent to which human resources can be re- organized and “talent management”, namely, the extent to which human resources are leveragediv) Financial system: The depth, namely the availability of credit, equity, debt, insurance and other financial products, and the stability, namely, the mitigation of excessive risk-taking and opportunistic behaviour of the financial system.A.i, iii, ivB.i, ii, ivC.i, ii, iiiD.ii, iii, iv

The Competitiveness of the nation has four effects on Multinational Enterprises (MNEs).*1 pointTRUEFALSE

The capacity of a country’s industries to innovate and upgrade is a key determinant of national competitiveness.A. TrueB. False

What are the motives of Chinese firms to go global?

Competitiveness does not connote the ability of a nation to compete internationally in all its industries A. True B. False

China has moved to central place in in the functioning of many global value chains. Choose one sector e.g.• a commodity• or sector (textiles, ICT, consumer goods, services).Has China’s domestic industry policy played an important role in integration and expansion into GVCs?• If so, how?• If not, want other explanations more important / convincing?Remember• Only need to outline main concepts• Use concepts from lecture but may look up other sources• E.g. Li, Xin., Meng, Bo. and Wang, Zhi (2019) Chapter 1. Recent patterns of global production and GVCparticipation in Global Value China Development Report 2019, OECD. https://www.oecd.org/dev/Global-Value-Chain-Development-Report-2019-Technological-Innovation-Supply-Chain-Trade-and-Workers-in-a-Globalized-World.pdf• Good practice for the exam!