Analysis of competitiveness of Chinese textile in EU market Essay

Analysis of competitiveness of Chinese textile in EU market - Essay Example The paper tells about the entry of China in the world market since 2005, with the quota-benefits is instrumental in her rising position as an important player in the world market with cutting edge of competitiveness and higher standards. Clark observes in his study of international competitiveness the need for the management and organization to work in harmony. â€Å"Management and organization is the focal point of Clark’s study. It is the force of international competitiveness that creates incentive for change. A government can create temporary incentives but can do little to get domestic firms optimize their objective functions in the long run†. The study conducted by Caves indicates that producers behaviour and resource allocation are altered by trade changes, rate of adjustment of the structure of the manufacturing. Industries to import competition and the amount of the sunk capital are highly correlated, marketing opportunity at a global scale enhances the plant-s cale economies, and the product differentiation changes the effect of import competition.Collis advocates a different approach saying â€Å"that an appropriate industrial policy corrects market imperfections and creates congenial environment for successful business. To adopt suitable industrial policy, it is essential to clearly define industry’s role, understand company’s strategies in the light of shifting comparative advantage and the changing structure of the global industries, identify market failures and implement coherent policies to minimize the pitfalls.†