The competition between companies make difference

Article by Hongxinglucia

Competition policy is part of the new international orthodoxy in economic policy and, at the same time, was viewed in South Africa as a crucial element of economic transformation. This article reviews the role of competition policy in economic development and the experiences of developing countries. However, the laws been introduced in one of the objectives from Eight Malaysia Plan on 2001 to 2005. Moreover, the article stated that all of the developing countries contributing with competition, competitiveness and also economic development. Besides that, on this article written of the objectives and advantages of competition laws and proved that this law makes the country developed well. Eventually competition laws can determines the decision which government would take to resolve the crisis happening throughout the countries, example is in Malaysia. For current situation of petrol price increases result up increases on half of the basic needed resources.

China Machinery Industry Federation executive vice president Zhou Kai points out, in recent years, China”s machinery industry grows in high speed environment continue to improve competitiveness, mainly reflected in two aspects : mechanical industry independent innovation ability, ability to adapt to the market to improve, great technology equipment is homebred change pace to accelerate; structural adjustment obtained positive positive result, high efficiency, energy saving, advanced equipment production in the proportion in total output increased.

China machinery industry independent innovation capability is not strong, the lack of independent brands, so that we in the globalization of the international division of labor in the low end of industrial chain, this is the impact of China”s machinery industry competitiveness. He thinks, current economic globalization is adjusted stage by stage and the formation of new international production network, more and more products from countries or more than one company manufacturing, appeared even” virtual” manufacturer. They only have the product design, and does not engage in any of the actual manufacturing process.As the professional manufacturer of complete sets of mining machinery, such as ball mill, Henan Hongxing is always doing the best in products and service.

The biggest characteristic of international production network, is a multinational corporations as the dominant, many suppliers complementary base mode of division of labor. In this mode, the industrial international competition is divided into two levels: the first level, is the competition between transnational corporation, the competition in the industrial chain of high-end, leading the industry development direction of the market; second levels, is one of the many suppliers in complementary division of the market competition, the competition in the industry chain the lower end, in the competition and to cultivate a large number of” world processing factory”. The first level is the innovation of knowledge and technology competition, is to obtain higher benefit competition; the second level is the scale, efficiency, quality, cost, price competition, to which it is attached the first level, in the competition to get economic benefits of lower.

Over the years, China Machinery Industry in the international market the main involvement is the second level of competition, is relying on the huge production capacity and low labor cost advantage, won the international competition in the market place. Therefore, only when the first level competition and the second level of competition are the formation of a strong advantage, ability makes our country machinery industrial international competitiveness in general get promoted.

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Use and distribution of this article is subject to our publisher guidelines
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