Europe looks at China as more of a strategic partner than a competitive threat so it has stayed more out of the currency debate than the U.S..

A strategic partner China is not, ... But neither is China our inevitable and implacable foe.

Competitive forces = the underlying drivers of profitability P.25

In essence, the job of the strategist is to understand and cope with competition. P. 25

If the forces are intense, (..) almost no company earns attractive returns on investment.

If the forces are benign, (..) many companies are profitable. P. 25

The strongest competitive force or forces determine the profitability of an industry and become the most important to strategy formulation. The most salient force, however, is not always obvious. P. 26