ABSTRACT
The US economy has declined in international competitiveness. Competitiveness is a relative concept, requiring comparison of two or more players. As governments have assumed greater responsibility for growth rates, levels of employment, and maintenance of values of their currencies, they see it as more desirable to insulate the economy from instabilities arising out of international activities. The world economy must become more orderly and cooperative before the United States can become more competitive within it. National governments are interested in wealth and power, and many are now able and willing to interfere to minimize the costs of adjustment to international disturbances. While seeking to achieve greater industrial growth, with increased efficiency, each government also wants a greater share of the benefits of economic growth for its nation, a more equitable distribution of the gains from trade, and participation in technological advance.
