"undermine competitiveness" is correct and usable in written English.
You can use it to refer to any instance where one person, entity, or idea affects another's ability to compete in a fair manner. For example, "The company's practices of price fixing sought to undermine their competitors' competitiveness."
Membership requires Armenia to introduce high tariffs, which undermine competitiveness and deter foreign investors.
PSI looked at groups such as BusinessEurope, which has argued climate policies will undermine competitiveness, and the European Chemical Council, which argued that strengthening the EU Emissions Trading System would lead to businesses moving overseas for lower energy costs.
The Energy Intensive Users Group said it supported the government's efforts to shift to cleaner energy generation "but we need to ensure that in doing so we don't undermine competitiveness of UK manufacturing internationally".
But euro-area governments understand that their high spending and consequent high taxes have undermined competitiveness, and are therefore cutting the state's share of GDP. Britain's politicians, meanwhile, are raising taxes and spending in order to move towards the social-democratic ideal with which other Europeans have become disillusioned.
Fear of failure suppresses creativity and innovation, which undermines competitiveness.
Switzerland is managing outside the EU with a strong industrial base in pharmaceuticals and several other industries, but listening to the voice of Swiss industrialists it is not a free lunch, and the barriers for immigration risk undermining competitiveness in the long run.
Increased foreign competition began to undermine the competitiveness of local textile processing businesses.
No one doubts that Brazil needs to open up bottlenecks that undermine its competitiveness.
These included BusinessEurope, which has argued that EU climate targets undermine industrial competitiveness.
But many countries not least Britain and Ireland say that any attempt to harmonise rates would undermine their competitiveness and lead to an eventual rounding-up of tax.
Mr. Suranyi said taxes on banks threatened to undermine the competitiveness of the banking sector, which was already suffering from the economic downturn.
