| One of the foundations of
company productivity rests on the level of sophistication
of operations, especially as companies shift from competing
on the basis of comparative advantage (e.g., low-cost
labor, natural resources, etc.) to competing on competitive
advantage (e.g., unique products, processes, etc.).
The Philippines has competitive advantages in terms
of the prevalence of foreign technology licensing and
the willingness of its managers to delegate authority
to its workforce. The advantage in global markets does
not rely heavily on either low-cost natural resources
nor unique products and processes. The country, however,
does lack a sophistication in production processes,
capacity for innovation, and limited distribution channels.
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