Economy

Economic Moat (National)

Definition

A country's sustainable competitive advantages that protect its economic position — analogous to Warren Buffett's concept of corporate moats.

Explanation

Examples: US moats include dollar reserve status, deep capital markets, and technology leadership. Switzerland's moats: financial secrecy/expertise, pharma, and political neutrality. Singapore: strategic location, rule of law, and talent attraction. National moats erode over time if not maintained — the UK lost imperial trade advantages; Japan lost manufacturing dominance to China.