International competitiveness could be explained based on various economic models or theories. However, David Ricardo’s comparative advantage theory could be the best theoretical choice in this particular case, because it clearly outlines the factors that enhance a country’s or a region’s competitiveness in the international market arena (Johansson, Karlsson & Stough, 2002). According to this theory, if a given country can produce goods and/or services at a lower opportunity cost as compared to other countries, then that particular country has a comparative advantage (Maneschi, 2008). On same note, even though a given country is in a position of producing all goods and services efficiently as compared to other countries, trading with each other could be beneficial for both countries, provided their relative efficiencies differ (Ajitabh, 2008). Comparative advantage is determined by the available resources. In addition, the scope of a comparative advantage of a given country is likely to change over time, depending on the actions of the country as well as efficiency improvement in another country (Kingston & Scally, 2006).
Singapore has emerged as one of the major growing economies in the world, and its importance is hard to be ignored. As such, the country is seen as one of the most competitive countries in the international market. Its international competitiveness is based on various factors, which could be explained based on David Ricardo’s comparative advantage (Huff, 2007).
However, there are a number of risk factors that are likely to be encountered by Apple Inc., an organization considering doing business in Singapore. One of such factors is market fluctuations. Although it is possible for an organization to monitor possible factor that could affect the market, it is difficult to accurately predict market fluctuations (Wilson, 2011). The second factor is foreign exchange and interest rate fluctuations. This makes it difficult for the organization to plan ahead on its business operations. Lastly, competition is yet another risk factor that could influence doing business in Singapore. Due to the attractiveness of Singapore as a business niche, many organizations have turned their interest in establishing businesses in the country; hence competition is high (Wilson, 2011).
Reference List
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Ezeala-Harrison, F. (2009). Theory and policy of international competitiveness. Westport, Conn. [u.a.], Praeger
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