One reason to bring in others is to access their talents, expertise and connections.

But you want them to remain competitive, and you do so by forcing them to compete with the outside world.

The incentive to stop being the best disappears when you bring in others, and they only need to compete locally.

This logic applies to multinational corporation attraction to a country. It should also apply to attracting individuals who are foreign – to the country, to the organisation, even to your own team.

The lesson is to ensure the incentives remain to be as competitive as possible.

“As MNCs produced for an export market, they were forced to stay internationally competitive and therefore had an incentive to bring in the best available technology.

This contrasts with Brazil and Argentina where foreign MNCs were offered access to a protected domestic market.

Source: Singapore’s success – engineering economic growth

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