The first of these is the quality of the organisation. A well-conceived organisation adapted to the challenges faced by the firm can trigger the functions and competences most relevant to its success. Empirical research shows that when Portuguese firms are reorganised in response to an external shock, adding a new hierarchical level of managers, their productivity accelerates.
The markets are not behaving in the way that some, if not most, analysts anticipated as the U.S. current account deficit rose above its previous high of 3-1/2 percent of GDP recorded in 1986. Of course, deficits that cumulate to ever-increasing net external debt, with its attendant rise in servicing costs, cannot persist indefinitely. At some point investors will balk at further financing.