A STRATEGIC MANAGEMENT MODEL FOR ECONOMIC DEVELOPMENT The Feitoria Prime Market Model – The Competitiveness Concept: MFN Tariff The bilateral trade opportunities Portugal – Poland and Portugal – Ukraine

Abstract

The paper presents an upgrade of the strategic management model for economic development, the Feitoria Prime Market Model (Feitoria Model), developed by Botelho & Kulishov (2018) which has an innovation: the incorporation of the concept of competitiveness of products in markets, the Most-Favored Nation Tariff (MFN Tariff). The Feitoria Model identifies new markets for companies to increase the number of markets to place their product portfolio. Feitoria Model is based on the comparative advantage concept of Ricardo (1817) and incorporates economic and political dimensions in order to avoid unstable economies and the MFN tariff in order to compare the competitiveness of products in multiple markets. The study presents the bilateral trade opportunities, Portugal -Poland and Portugal -Ukraine. The methodology presented below is configured confronting the potential trade to effectively verified among the countries and uses a trade database 2013 -2017 period extracted from the UN COMTRADE free database.

Comparative Advantages of International Trade: The Bilateral Opportunities Portugal – Latvia, Portugal – Poland and Portugal – Ukraine

“…The second one is the Index of Complementarity (IC), which analyses the crossover between supply and demand for the studied products taking into account the world context, that is, the comparative advantages of the exporter and the comparative disadvantages of the importer (Xavier et al, 2008;Xavier, 2009). According Botelho & Kulishov (2018, 2019, after selecting a new market (country) based on EC and IC indexes and other variables of the Feitoria Model, the next step is to study the selected markets in order to choose the country with the best macroeconomic situation. The economic situation warns about economic risks that could inflict severe and long-lasting damage on development prospects.…”

“…According to Botelho & Kulishov (2018, 2019, the Feitoria Model incorporates Fundamental Concepts: the comparative advantage concept, the size (amount of trade) and the dynamism (given by growth of trade, expressed by CAGR -Compound Annual Growth Rate) and Economic and Political Concepts: the Ease of Doing Business, Worldwide Governance Indicators, the Credit Rating, the Free Commerce and the Competitiveness Concept MFN Tariff (Most-Favored Nation Tariff).…”