Abstract
The lack of a commonly accepted definition is in itself an opposing factor to the concept of macro-economic competitiveness. Significantly, the argument is based on the fact that macro-economic competitiveness is amorphous in nature and possesses knowledge of diverse interpretations and understanding. This is by far dangerous to base economic policies around such a concept. However, one needs to note that competitiveness of regions or locations can be best explained using trade theories. This discussion begins with a review on the limited role that geographical factors have on traditional trade theories in terms of competitiveness. Thereafter, the topic deviates into the emergence of the new economic and trade theories. It also explains as to which of these new theories consider geographical factors as determinants of trade.
