ALCA OR PAN-AMERICAN ECONOMIC COMPETITIVENESS GAMES
Abstract
The Americas Free Commerce Area (ALCA) is an ongoing subject both in Diplomacy and the Media and Brazilian Companies are also engaged in an ongoing discussion about it, both as part of their priorities and as the definition of their strategies. The expression "strategic planning" is a little worn out, but by any other name, companies need to work ALCA into their strategy planning and define their position towards it. The media has spread the notion that ALCA is a subject for 2005, but that's not quite so. By 2005 negotiations should be over and an agreement will be put in place by January 1st 2006 with free commerce flow, which will mean bigger competition. Therefore, what we will be seeing can be compared to the sports competition known as the Pan-American games involving all three Americas. Anyone knows that before a competition, one has to prepare for it, and this will be a very important contest since once begun, it will be permanent, with daily disputes involving commercial transactions. So, it demands adequate training. But that's not all that's happening. In general, we can't perceive companies, whether individually or as a class entity group, worrying about ALCA and the struggle it will yield. This situation reminds us of Stephen Covey's basic lesson that people and organizations cease to be effective because they no longer care for important things which are not urgent, and deal daily with urgent sometimes unimportant matters (Covey, 1995). The rub is at some point the important things which were not urgent become so. If there's no preparedness crisis will pop up and we will only see what's in front of us when it's too late. Covey's affirmation is a matter of common sense. The problem is that common sense is not as common as most people think. Frequently, the notion that there's no urgency is a mistaken one. Some people will even go as far as considering the subject unimportant. In the following text we will stress that ALCA is not only important, but also urgent and deserves priority treatment which we will outline. That's true not only for the companies, it's also an opportunity to reexamine their economic competitiveness and review their competitive strategy in a global economy.
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