The Competitiveness and Sophistication Index of Domestic Products on Global Markets

Abstract

This article analyzes the current state of Moldova's foreign trade, highlighting the importance of competitiveness and the sophistication of exported products within the global economy. Moldova, a country with limited economic resources, faces significant challenges in its integration into international markets. In this context, the article aims to investigate the impact of the complexity of exported products on Moldova's positioning, emphasizing both the positive aspects and the challenges encountered. To evaluate the competitiveness of Moldovan products, the article uses a range of economic indicators, including the sophistication index, which reflects the level of innovation and refinement of the exported goods. It is emphasized that a higher level of product sophistication not only increases added value but also enhances their attractiveness in international markets. The article also addresses the gaps that need to be filled to improve competitiveness. For example, it mentions the need for investments in logistical infrastructure, the development of clear international marketing strategies, and workforce training as essential factors for enhancing the country's export capacity. In conclusion, the article reiterates that by focusing on increasing product sophistication and improving competitiveness, Moldova can strengthen its position in global markets, attract foreign investment, and ensure sustainable economic development in the long term. A series of strategic recommendations for the future are proposed, with the primary goal of effectively integrating into the globalized economy. UDC: [339.137.2:658.562]:339.564(478); JEL Classification: F6, F4, F1.