Public Policy in Bangladesh

Chapter One: Introduction
1.1 Background of the Study
Increasing global competition is changing the environment facing most companies today. As trade barriers fall and transaction costs decline, new global competitors are entering previously more isolated domestic markets. In response to this intensified competitive pressure, local companies are pushed to enhance performance by innovating and adopting process and product improvements. This domestic sector dynamic leads to higher productivity, which, in turn, can create sustainable competitive advantages for companies, as well as being the most important driver of job creation and per-capita income growth for the economy (Baily et al., 2005). Higher productivity is the synonym of improved competitiveness. Enterprises are competitive when their productivity of labor and all production factors grow consistently, which situation allows them to reduce the unit costs of their output, etc., but also affect other enterprises at the national and international levels. Higher productivity provides funding for an organization’s expansion plans. In the short term, citizens benefit from the better and cheaper products available on the market, and in the medium term from growing employment. Another effect is constant growth in wages in real terms. As a result, a country’s living standard goes up when its productivity growth (in macro-terms) is sustained. Therefore, an enterprise plays the primary role in generating revenues and employment, and contributes to a lasting and balanced economic and social development (Wysokińska, 2003). 1.2 Conceptualization
Increasing global competition is changing the environment facing most companies today. As trade barriers fall and transaction costs decline, new global competitors are entering previously more isolated domestic markets. In response to this intensified competitive pressure, local companies are pushed to enhance performance by innovating and adopting process and product

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