Investor Presentaiton

Improving the Business Environment Context for Firm Strategy and Rivalry Factor (Input) Conditions • Local rules and incentives that encourage investment and productivity - e.g. incentives for capital investments, IP protection, sound corporate governance standards Open and vigorous local competition - - Openness to foreign competition Demand Conditions • Access to high quality business inputs - Qualified human resources - Capital availability - Physical infrastructure - Scientific and technological infrastructure - Strict competition laws Related and Supporting Industries • . Availability and quality of suppliers and supporting industries Sophisticated and demanding local needs - e.g., Strict quality, safety, and environmental standards • · Many things matter for competitiveness Successful economic development is a process of successive upgrading, in which the business environment improves to enable increasingly sophisticated ways of competing 20121019 Mexican Competitiveness Presentation-FINAL 10 Copyright 2012 Professor Michael E. Porter

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