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41-840: Competitiveness Index may refer to: Global Competitiveness Report based on the Global Competitiveness Index , published by the World Economic Forum World Competitiveness Yearbook published by the Swiss International Institute for Management Development Space Competitiveness Index , published annually since 2008 by Futron Corporation Travel and Tourism Competitiveness Report (Vietnam) India City Competitiveness Index IT industry competitiveness index See also Competition (disambiguation) Topics referred to by

82-476: A resource , that specifically has full or substantial fungibility : that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them. The price of a commodity good is typically determined as a function of its market as a whole: well-established physical commodities have actively traded spot and derivative markets. The wide availability of commodities typically leads to smaller profit margins and diminishes

123-432: A 50 mg tablet of calcium is of equal value to a consumer no matter what company produces and markets it, and as such, multivitamins are now sold in bulk and are available at any supermarket with little brand differentiation. Following this trend, nanomaterials are emerging from carrying premium profit margins for market participants to a status of commodification. There is a spectrum of commoditization, rather than

164-408: A binary distinction of "commodity versus differentiable product". Few products have complete undifferentiability and hence fungibility; even electricity can be differentiated in the market based on its method of generation (e.g., fossil fuel, wind, solar), in markets where energy choice lets a buyer opt (and pay more) for renewable methods if desired. Many products' degree of commoditization depends on

205-649: A commodity is an object or a good or service ("product" or "activity" ) produced by human labour . Objects are external to man. However, some objects attain " use value " to persons in this world, when they are found to be "necessary, useful or pleasant in life". "Use value" makes an object "an object of human wants", or "a means of subsistence in the widest sense". As society developed, people found that they could trade goods and services for other goods and services. At this stage, these goods and services became "commodities". According to Marx, commodities are defined as objects which are offered for sale or are "exchanged in

246-476: A decade, where commodities as a whole trade at a price that is greater than their long term moving average . A Super Cycle will usually occur when there is large industrial and commercial change in a country or world that requires more resources to support the change. As prices rise, goods and services that rely on commodities rise with them. There have been four super cycles over the last 120 years worldwide. The first commodity super cycle started in late 1890 and

287-438: A market". In the marketplace, where commodities are sold, "use value" is not helpful in facilitating the sale of commodities. Accordingly, in addition to having use value, commodities must have an "exchange value"—a value that could be expressed in the market. Prior to Marx, many economists debated as to what elements made up exchange value. Adam Smith maintained that exchange value was made up of rent , profit , labour and

328-518: A stable macroeconomic framework (pillar 3), and good health and primary education (pillar 4). As wages rise with advancing development, countries move into the efficiency-driven stage of development, when they must begin to develop more efficient production processes and increase product quality . At this point, competitiveness becomes increasingly driven by higher education and training (pillar 5), efficient goods markets (pillar 6), efficient labor markets (pillar 7), developed financial markets (pillar 8),

369-423: Is a list of companies trading globally in commodities, descending by size as of October 28, 2011. In the original and simplified sense, commodities were things of value, of uniform quality, that were produced in large quantities by many different producers; the items from each different producer were considered equivalent. On a commodity exchange, it is the underlying standard stated in the contract that defines

410-416: Is an instrument of labour"), even though they may not be produced specifically for the market, or be non-reproducible goods. Marx's analysis of the commodity is intended to help solve the problem of what establishes the economic value of goods, using the labour theory of value . This problem was extensively debated by Adam Smith , David Ricardo and Karl Rodbertus-Jagetzow among others. All three of

451-504: Is different from Wikidata All article disambiguation pages All disambiguation pages Global Competitiveness Report The report "assesses the ability of countries to provide high levels of prosperity to their citizens". This in turn depends on how productively a country uses available resources . Therefore, the Global Competitiveness Index measures the set of institutions, policies, and factors that set

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492-680: The Global Competitiveness Report ). Data from the Global Competitiveness Index relating to the strength of auditing and reporting standards, institutions and judicial independence is used in the Basel AML Index , a money laundering risk assessment tool developed by the Basel Institute on Governance . In spite of the World Economic Forum 's Global Risks Report which is increasingly identifying environmental pressures as

533-577: The brand , the user interface and the perceived quality. The demand for one type of stereo may be much larger than demand for another. The price of a commodity good is typically determined as a function of its market as a whole. Well-established physical commodities have actively traded spot and derivative markets. Soft commodities are goods that are grown, such as wheat , or rice . Hard commodities are mined . Examples include gold , silver , helium , oil , and Bitcoin . Energy commodities include electricity, gas, coal and oil. Electricity has

574-698: The sustainable current and medium-term levels of economic prosperity." Since 2004, the report ranks the world's nations according to the Global Competitiveness Index , based on the latest theoretical and empirical research. It is made up of over 110 variables , of which two thirds come from the Executive Opinion Survey, and one third comes from publicly available sources such as the United Nations . The variables are organized into twelve pillars, with each pillar representing an area considered as an important determinant of competitiveness. One part of

615-467: The Latin commoditas , meaning "suitability, convenience, advantage". The Latin word commodus (from which English gets other words including commodious and accommodate ) meant variously "appropriate", "proper measure, time, or condition", and "advantage, benefit". In economics, the term commodity is used specifically for economic goods that have full or partial but substantial fungibility ; that is,

656-436: The ability to harness the benefits of existing technologies (pillar 9), and its market size, both domestic and international (pillar 10). Finally, as countries move into the innovation-driven stage, they are only able to sustain higher wages and a higher standard of living if their businesses are able to compete by providing new or unique products. At this stage, companies must compete by producing new and different goods using

697-422: The above-mentioned economists rejected the theory that labour composed 100% of the exchange value of any commodity. In varying degrees, these economists turned to supply and demand to establish the price of commodities. Marx held that the "price" and the "value" of a commodity were not synonymous. Price of any commodity would vary according to the imbalance of supply to demand at any one period of time. The "value" of

738-639: The buyer's mentality and means. For example, milk, eggs, and notebook paper are not differentiated by many customers; for them, the product is fungible and lowest price is the main decisive factor in the purchasing choice. Other customers take into consideration other factors besides price, such as environmental sustainability and animal welfare. To these customers, distinctions such as " organic versus not" or " cage free versus not" count toward differentiating brands of milk or eggs, and percentage of recycled content or Forest Stewardship Council certification count toward differentiating brands of notebook paper. This

779-443: The commodity markets through a commodity price index . In order to diversify their investments and mitigate the risks associated with inflationary debasement of currencies, pension funds and sovereign wealth funds allocate capital to non-listed assets such as a commodities and commodity-related infrastructure. The inventory of commodities, with low inventories typically leading to more volatile future prices and increasing

820-404: The commodity, not any quality inherent in a specific producer's product. Commodities exchanges include: Markets for trading commodities can be very efficient , particularly if the division into pools matches demand segments . These markets will quickly respond to changes in supply and demand to find an equilibrium price and quantity. In addition, investors can gain passive exposure to

861-399: The costs of wear and tear on the instruments of husbandry. David Ricardo , a follower of Adam Smith, modified Smith's approach on this point by alleging that labour alone is the content of the exchange value of any good or service. While maintaining that all exchange value in commodities was derived directly from the hands of the people that made the commodity, Ricardo noted that only part of

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902-417: The dominant risks to humanity, none of the indicators used to determine this report's competitiveness ranking reflect any of the countries' environmental dimensions such as energy, water, climate risks, resource or food security, etc. The Global Competitiveness Report 2018 and 2019 used the ecological footprint as a context indicator, but the footprint was not included in the scoring algorithm that determines

943-583: The early 70s. In the 1970s as world economies grew they needed more materials and energy to support expansion leading to increases in prices across the board. This boom came to an end as foreign investments fled as extractive industries became nationalized. The most recent of commodity super cycles began in 2000 as China joined the World Trade Organization . China was also in the beginning of their boom as industry and expansion took off. Workers moved into cities as emerging industries took off and offered

984-451: The exchange value of the commodity was paid to the worker who made the commodity. The other part of the value of this particular commodity was labour that was not paid to the worker—unpaid labour. This unpaid labour was retained by the owner of the means of production. In capitalist society, the capitalist owns the means of production and therefore the unpaid labour is retained by the capitalist as rent or as profit. The means of production means

1025-454: The factor-driven stage countries compete based on their factor endowments, primarily unskilled labor and natural resources. Companies compete on the basis of prices and sell basic products or commodities , with their low productivity reflected in low wages. To maintain competitiveness at this stage of development, competitiveness hinges mainly on well-functioning public and private institutions (pillar 1), appropriate infrastructure (pillar 2),

1066-558: The importance of factors (such as brand name ) other than price. Most commodities are raw materials , basic resources, agricultural , or mining products, such as iron ore , sugar , or grains like rice and wheat . Commodities can also be mass-produced unspecialized products such as chemicals and computer memory . Popular commodities include crude oil , corn , gold and Bitcoin . Other definitions of commodity include something useful or valued and an alternative term for an economic good or service available for purchase in

1107-503: The market treats their instances as equivalent or nearly so with no regard to who produced them. Karl Marx described this property as follows: "From the taste of wheat , it is not possible to tell who produced it, a Russian serf , a French peasant or an English capitalist ." Petroleum and copper are examples of commodity goods: their supply and demand are a part of one universal market. Non-commodity items such as stereo systems have many aspects of product differentiation , such as

1148-501: The market. In such standard works as Alfred Marshall 's Principles of Economics (1920) and Léon Walras 's Elements of Pure Economics ([1926] 1954) 'commodity' serves as general term for an economic good or service. The word commodity came into use in English in the 15th century, from the French commodité , "amenity, convenience". Going further back, the French word derives from

1189-488: The most sophisticated production processes (pillar 11) and through innovation (pillar 12). Thus, the impact of each pillar on competitiveness varies across countries, in function of their stages of economic development . Therefore, in the calculation of the GCI, pillars are given different weights depending on the per capita income of the nation. The weights used are the values that best explain growth in recent years For example,

1230-501: The nation to be competitive. In addition, what creates productivity in Sweden is necessarily different from what drives it in Ghana . Thus, the GCI separates countries into three specific stages: factor-driven, efficiency -driven, and innovation -driven, each implying a growing degree of complexity in the operation of the economy. The report has twelve pillars of competitiveness. These are: In

1271-656: The particular characteristic that it is usually uneconomical to store, and must therefore be consumed as soon as it is produced. Commoditization occurs as a goods or services market loses differentiation across its supply base, often by the diffusion of the intellectual capital necessary to acquire or produce it efficiently. As such, goods that formerly carried premium margins for market participants have become commodities, such as generic pharmaceuticals and DRAM chips . An article in The New York Times cites multivitamin supplements as an example of commoditization;

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1312-399: The ranking. This is the full ranking of the 2019 report: This is the top 30 of the 2018 report: This is the top 30 of the 2017–2018 report: This is the top 30 of the 2016–2017 report: This is the top 30 of the 2015–2016 report: This is the top 30 of the 2014–2015 report: This is the top 30 of the 2013–2014 report: This is the top 30 of the 2012–2013 report: This is

1353-403: The report is the Executive Opinion Survey, which is a survey of a representative sample of business leaders in their respective countries. Respondent numbers have increased every year and is currently just over 13,500 in 142 countries (2010). The report notes that as a nation develops, wages tend to increase, and that in order to sustain this higher income, labor productivity must improve for

1394-584: The risk of a " stockout " (inventory exhaustion). According to economist theorists, companies receive a convenience yield by holding inventories of certain commodities. Data on inventories of commodities are not available from one common source, although data is available from various sources. Inventory data on 31 commodities was used in a 2006 study on the relationship between inventories and commodity futures risk premiums. In classical political economy and especially in Karl Marx 's critique of political economy ,

1435-455: The same commodity produced by the skilled worker. Marx pointed out, however, that in society at large, an average amount of time that was necessary to produce the commodity would arise. This average time necessary to produce the commodity Marx called the "socially necessary labour time". Socially necessary labour time was the proper basis on which to base the "exchange value" of a given commodity. Commodity Super Cycles are periods of time, around

1476-467: The same commodity would be consistent and would reflect the amount of labour value used to produce that commodity. Prior to Marx, economists noted that the problem with using the "quantity of labour" to establish the value of commodities was that the time spent by an unskilled worker would be longer than the time spent on the same commodity by a skilled worker. Thus, under this analysis, the commodity produced by an unskilled worker would be more valuable than

1517-438: The same term [REDACTED] This disambiguation page lists articles associated with the title Competitiveness Index . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=Competitiveness_Index&oldid=880514247 " Category : Disambiguation pages Hidden categories: Short description

1558-415: The site where the commodity is made, the raw products that are used in the production and the instruments or machines that are used for the production of the commodity. However, not all commodities are reproducible nor were all commodities originally intended to be sold in the market. These priced goods are also treated as commodities, e.g. human labour-power, works of art and natural resources ("earth itself

1599-551: The sophistication and innovation factors contribute 10% to the final score in factor and efficiency-driven economies, but 30% in innovation-driven economies. Intermediate values are used for economies in transition between stages. The Global Competitiveness Index's annual reports are somewhat similar to the Ease of Doing Business Index and the Indices of Economic Freedom , which also look at factors affecting economic growth (but not as many as

1640-473: The top 30 of the 2011–2012 report: This is the top 30 of the 2010–2011 report: This is the top 30 of the 2009–2010 report: This is the top 30 of the 2008–2009 report: You can find the computation and structure of the GCI pp. 49–50 of the Global Competitiveness Report 2013–2014, Full Data Edition. Commodities In economics , a commodity is an economic good , usually

1681-555: Was accelerated on the back of widespread U.S. industrialization and World War 1. In 1917 commodity prices peaked and then entered a downtrend to the 1930s. As war erupted in Europe in the late 1930s and eventually including the U.S. the world saw a new cycle begin. Countries were not just preparing for war but also the Aftermath of World War II as lots of Europe and Asia faced heavy rebuilding. This cycle eventually peaked in 1951 and faded away in

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