Final answer:
A business that uses technology to surpass its competitors has a competitive advantage. Technology is essential for sustainable development and economic growth, and has the power to create significant economic and environmental impacts.
Step-by-step explanation:
A business that successfully leverages technology to achieve a superior position in the marketplace can be said to have gained competitive advantage. This advantage occurs when a company develops new technologies or incorporates existing technologies in ways that make it more efficient, productive, or innovative than its competitors. Investment in human capital, technology, and physical plant and equipment can contribute to this competitive edge, allowing for stable and market-oriented economic growth. It is important for a business to cultivate a climate in which these inputs can thrive, supported by a market economy and legal system that sustains property and contractual rights.
Economic development and sustainable development may seem at odds, especially when the latter aims to meet current needs without compromising the future. Nevertheless, technological innovation, when aligned with regulatory intervention, can potentiate both, allowing for economic growth that also preserves environmental quality. Advancements in technology have shifted production globally, favoring high-tech capital equipment and sectors in which certain countries have a comparative advantage.
Whether these changes lead to sustainable development, environmental capital, or competitive advantage, they are significant in shaping economic landscapes. The evolution of technology in business practices—notably in manufacturing processes such as the incorporation of computers—can provide a significant competitive edge, impacting net exports and overall economic status of nations.