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Economics > 4.1 - International Economics > Flashcards

4.1 - International Economics Flashcards

1
Q

What is globalisation?

A

Globalisation is the economic integration of different countries through increasing freedoms in the cross-border movement of people, goods/services, technology & finance

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2
Q

What are the four main characteristics of globalisation?

A
  • Increasing foreign ownership of companies
  • Increasing movement of labour & technology across borders
  • Free trade in goods/services
  • Easy flows of capital (finance) across borders
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3
Q

What factors have contributed to globalisation in the last 50 years?

A
  • Economies of scale generated by containerisation in the shipping industry
  • A rapid growth in the number & influence of TNCs
  • Deregulation of many financial markets in the 1990s → led to the expansion of global financial services & provided more access to capital
  • The improved ability for firms to easily connect & promote themselves internationally due to the internet & improvements to communications technology e.g Skype, WhatsApp, WeChat etc
  • The end of the Cold War between Russia & the West in 1990 opened up former communist countries around the world enlarging the global supply of labour e.g. more than 800,000 people migrated from East to West Germany between 1990 & 1991
  • The Increased effectiveness of the WTO in negotiating new trade agreements & helping countries to open up to free trade (trade liberalisation),→ increased international specialisation & volume of trade
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4
Q

What are the impacts of globalisation on consumers?

A
  • More choice - wider range of goods avaialable from all around the world
  • Lower prices - firms are taking advantage of comparative advantage & produce in countries with lower costs
  • Rise in prices - rising incomes → higher demand for G&S
  • Loss of culture
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5
Q

What are the impacts of globalisation on workers?

A
  • Structural unemployment from shifiting sectors
  • Increased migration - could lower wages but also important skills could increase AD & jobs
  • Wages for high skilled workers increase due to high demand → increasing inequality
  • Poor conditions in sweatshops
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6
Q

What are the impacts of globalisation on producers?

A
  • Firms are able to source products from more countries & sell them in more countries → reduces risk since a collapse in the market of one country will have a smaller impact on the business
  • Can employ low-skilled workers cheaply in developing countries, exploit comparative advantage & have larger markets → increased profits
  • Firms unable to compete internationally will lose out
  • Monopoly power of MNCs
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7
Q

What are the impacts of globalisation on government?

A
  • May receive higher taxes as TNCs pay taxes and so do their employees - could lose out through tax avoidance
  • TNCs have the power to bribe and lobby governments → corruption
  • Increase in organised crime
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8
Q

What are the impacts of globalisation on environment?

A
  • Rapid depletion of natural resources
  • Deforestation
  • Increased global warming
  • The world can work together and tackle climate change by sharing ideas and technology
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9
Q

What is comparative advantage?

A
  • Comparative advantage is the theory which states that a country should specialise in the G&S that it can produce at the lowest opportunity cost
  • Excess production can be exported
  • G&S not produced in the country can be imported
  • Developed by David Ricardo in 1817
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10
Q

What is absolute advanatage?

A
  • Absolute advantage occurs when a country is able to produce a product using fewer factors of production than another country
  • A country may have absolute advantage but comparative advantage - it should produce G&S in which it has comparative advantage
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11
Q

What are the assumptions of comparative advantage?

A
  1. Transport costs are zero: it does not account for moving the G&S between countries - depending on a nation’s location this is more/less of a problem
  2. There is perfect knowledge: each country knows what it has a comparative advantage in & also the comparative advantages of other countries
  3. Factor substitution is easily achieved: economies can quickly adjust to changing global market conditions by switching from capital to labour - and vice versa
  4. Constant costs of production: the theory does not take into account the economies of scale that can be achieved with an increase in output
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12
Q

What are the limitations of comparative advantage?

A
  • Over-dependence: specialisation creates a dependence on other countries which generates vulnerability e.g. receiving gas supplies from Russia works well when relations are good but has proven otherwise in an unexpected time of war
  • Environmental damage: The impact of negative production externalities isn’t considered by the theory - can worsen the quality of life in towns, cities & countries
  • Distribution of income: The GDP/capita is likely to increase, however, the distribution of the extra income is likely to be uneven with the wealthier gaining more
  • Structural unemployment: as countries specialise certain industries are likely to shut down → unemployment → these workers may not be able to move into other occupations → rise in long-term unemployed
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13
Q

What are the advantages of international specialisation & trade?

A
  • Lower prices
  • Greater variety of G&S
  • More competition leads to better-quality products
  • Economies of scale create efficiencies
  • Higher economic growth
  • Improved living standards
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14
Q

What are the disadvantages of international specialisation and trade?

A
  • Global monoplies emerge: as TNCs grow in size & increase market power, they can dictate prices & output in many regions + can influence governments & gain access to raw materials through bribery & corruption
  • Exposure to external shocks: shocks to other economies have a knock-on effect due to the interdependence that develops with trade e.g. russia-ukraine war
  • Deficit on current account on balance of payments: in developing countries, this situation is usually as a result of a lack of global competitiveness & it is importing necessity products
  • Unemployment: many firms that were successful in the local market may well fail in a global market + structural → government SSPs make a difference to the length & severity of structural unemployment
  • Dumping due to illegal government support: some governments support key industries to ensure they are globally competitive - usually in the form of subsidies which encourage excess production - this excess production is then dumped on world markets at low prices
  • Loss of sovreignity and culture
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15
Q

What is terms of trade and what is the formula?

A
  • Terms of trade refer to the ratio of a country’s average price of exports to the country’s average price of imports
  • Terms of trade = index of average export prices / index of average import prices x 100
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16
Q

What factors influence a country’s terms of trade?

A

Relative inflation rates: their price is now more expensive to the rest of the world → if exports have price inelastic demand, terms of trade will improve → if elastic then terms of trade will likely worsen

Raw material prices: cost of raw materials fall -> developing exporters (deterioration), developed importers (improvement)

Relative productivity rates: continuous improvements in productivity can lower costs & these can be passed on in the form of lower prices → lower export product prices = terms of trade will deteriorate i.e. fewer imports can be bought with one unit of exports

Changes in exchange rates: if prices change then the terms of trade between the two countries change → specific data would need to be provided to determine if the ToT have improved or deteriorated for each trading partner

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17
Q

What are the impacts of changes in the terms of trade?

A
  • Changes to the current account balance in the Balance of Payments
  • Changes to national output (GDP)
  • Changes to unemployment levels
  • Changes to the level of international competitiveness
  • Changes to disposable income
  • Changes to standards of living
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18
Q

What are the two outcomes of an improvement to the terms of trade?

A
  • Improvement where export price rises → if PED of exports is inelastic then the reduction in QD will be less than increase in price → economy will benefit → output rises,
    unemployment falls, standard of living improves
  • Improvement where import price falls → if PED of imports is elastic (necessity) then the increase in QD will be more than decrease in price → economy will spend more on imports → more disposable income, standard of living improves, domestic output may fall as foreign consumption rises
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19
Q

What are the two outcomes of deteriorations to the terms of trade?

A
  • Deterioration where export price falls → if PED of exports is elastic then the increase in QD will be more than the decrease in price → economy will benefit → output rises, unemployment falls, standard of living improves
  • Deterioration where import price rises → where demand for imports is price inelastic, consumers would demand the goods in similar proportions → spend significantly more on imports → domestic output unlikely to fall, imports will fall slightly,
    less disposable income so worse standard of living
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20
Q

poor education (4.3)

A

Low human capital
→
Low productivity
→
Shifts LRAS to the left
→
Limits real GDP
→
Limits economic development
Madagascar GNI per capita fell from 460 to 240 (1980-90) - lost generation

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21
Q

infrastructure

A

Poor infrastructure
→
Increases costs
→
Left shift of SRAS
→
Increases prices
→
Decreases competitiveness
→
Less profit

Less corporation tax revenue
→
Less government spending on development.

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22
Q

What is a trading bloc?

A

When countries join together and agree to remove trade barriers

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23
Q

What is a free trade area?
Give a real-world example.

A
  • Removes trade barriers between each other, but free to set their own trade barriers on non-member countries
  • USMCA (US-Mexico-Canada Agreement) -> USA removed 75% chicken tariff on Mexico and 15% lumber tariff
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24
Q

What is a customs union?Give a real-world example.

A
  • Removed trade barriers with other member countries but must also have the same tariffs on non-member countries (common external tariff)
  • EU -> has 27 member states and a common external tariff of 10% on imported cars
  • South African customs union -> includes Botswana, South Africa, Namibia
  • Mercosur - Brazil, Argentina, Paraguay
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25
Q

What are common markets?
Give a real-world example.

A
  • Remove all trade barriers between each other and adopt a common external tariff + free movement of factors of production between members without special permission
  • Goal: improve the allocation of resources between the common market members & lower costs of production
  • EU single market
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26
Q

What is a monetary union?
Give a real-world example.

A
  • Trade barriers removed between members, adopt a common external tariff + all members share a common currency
  • Eurozone - all use the euro -> 20 out of 27 EU nations
  • Eastern Caribbean currency union
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27
Q

Essential conditions for a successful monetary union?

A
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28
Q

What are the benefits of regional trade agreements?

A
  • Trade creation -> improves efficiency & generates higher income
  • Tariffs between member states are eliminated & common tariffs to third party countries simplify trading conditions
  • Monetary union -> less uncertainty around exchange rates as they all use the same currency
  • Monetary union - simplifies trading costs & provides pricing transparency
  • Monetary union -> some member countries gain from improved monetary policy conditions e.g. european interest rate may be lower than individual country’s
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29
Q

What are the costs of regional trade agreements?

A
  • Trade diversion - as countries reallocate trade to partners in their agreement -> global inefficiency
  • Some domestic industries experience structural unemployment
  • Increased negative externalities of production, resource depletion & environmental damage
  • Transitioning to a monetary union can be expensive + firms may find it hard to adjust/change their menu prices
  • Member countries lose ability to set interest rates & control monetary policy
  • Loss of sovereignty
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30
Q

What is trade liberalisation?

A

The process of rolling back barriers to free trade

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31
Q

What two roles does the WTO have in trade liberalisation?

A

1) Organising rounds of talks: brings countries together & encourages them to reduce/eliminate protectionist trade barriers between themselves e.g. The Doha Round
2) Settling trade disputes: member countries can file a complaint if they believe a trading partner has violated a trade agreement - WTO then runs a hearing & makes a judgement

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32
Q

What are the conflicts between regional trade agreements and the WTO?

A
  • 320 RTAs globally in 2022
  • Regional agreements shift trade from a non-member who has comparative advantage, to a member who doesn’t
  • Regional trade members often institute common trade barriers on non-members - protectionism
  • RTAs can be beneficial for member countries but -> global inefficiency in the allocation of resources
  • WTO advocates for free trade between all member countries
33
Q

What are the 3 industry-based reasons for protectionism?

A
  • Infant industries: protects new firms that would be unlikely to succeed at start-up due to the level of global competition
  • Sunset industries: firms at the end of the life cycle, on their way out -> the government chooses to support them to help limit the economic damage that would occur if they closed abruptly
  • Strategic industries: industries e.g. energy, defence & agriculture are essential to self-sufficiency & security - being reliant on other countries for these -> vulnerability
34
Q

What are the non-industry based reasons for protectionism?

A
  • Dumping: when foreign firms sell products at unfairly low prices in foreign markets -> harms industries
  • Employment: when firms outsource production to other countries or certain industries are experiencing structural unemployment - gov steps in to protect jobs
  • Current account deficit: when imports > exports -> less money to support domestic firms
  • Labour/environmental regulations: many countries offer cheap labour & low-cost production due to poor environmental regulations -> protectionism helps apply pressure to bring change in these countries
35
Q

What is a tariff?

A
  • A tariff is a tax on imported goods/services (customs duty)

Domestic producers pay the tariff when the G/S crosses the border -> raises domestic firms’ cost of production -> often passed on to consumers as higher prices -> allows some domestic firms to increase their output -> employment rises

36
Q

What is a quota?

A
  • A physical limit on imports
  • E.g. in June 2022 the UK extended their quota on steel imports for a further 2 years to protect employment in the UK steel industry
  • This limit is usually set below the free market level of imports
  • As cheaper imports are limited, a quota raises the market price
  • Domestic firms benefit as they are able to supply more due to the lower level of imports -> increased employment
37
Q

How are subsidies to domestic producers a protectionist barrier?

A
  • A subsidy lowers the cost of production for domestic firms -> increased output & lower prices -> lower prices their goods/services = more competitive internationally -> export level increases -> increased output -> increased domestic employment
38
Q

What are some non-tariff protectionist barriers?

A
  • Health and safety regulations e.g. 2017 EU health regulation regarding the permitted level of aflotoxins in nuts - naturally higher in southern hemisphere countries -> blocked the import of southern hemisphere nuts
  • Product specifications e.g. Canada specified that all jam imported into Canada needed to be in a certain size of jar - many countries don’t usually manufacture jars in the required size
  • Environmental regulations e.g. in November 2021 new regulations in the EU & the USA to limit the amount of imports of ‘dirty steel’ - predominantly produced using coal fired power stations prevalent in China
  • Product labelling - expensive for firms to apply & may limit their desire to sell into certain markets
39
Q

What is the impact of a tariff on domestic consumers and producers?

A
  • Domestic producers: before tariff domestic producers produced output Q1 & their revenue was Pw x Q1;after tariff domestic producers produced Q3 & their revenue was Pw x Q3 -> domestic producer surplus has increased by area 2
  • Domestic consumers: before tariff domestic consumers consumed Q2 at a price of Pw; after tariff domestic consumers consumed less at Q4 at a higher price of Pw+tariff-> consumer surplus has decreased by areas 1, 2, 3 and 4
40
Q

What is the impact of tariffs on the government, living standards and equality?

A
  • Government: after tariff, government receives centre box in tax revenue
  • Living standards: SoL for consumers worsen as the value of their income is eroded - paying higher prices; domestic firms who benefit from increased production may increase employees’ wages-> increased SoL for employees
  • Equality: workers in industries that have been experiencing structural unemployment due to foreign competition will feel that the tariff results in them being treated more fairly
41
Q

What are the impacts of protectionist barriers on domestic producers? (quota, subsidy, & non-tariff)

A
  • Quota: increases their output, raises the selling price, increases their revenue
  • Subsidy: decreases costs of production, increases output, increases international competitiveness
  • Non-tariff: limits foreign competition, protects levels of outputs, may increase selling price and revenue
42
Q

What are the impacts of protectionist barriers on foreign producers? (quota, subsidy, & non-tariff)

A
  • Quotas: decreases their output, compared to a tariff, those firms who manage to export in the quota receive a higher price for their sales
  • Subsidy: harder to compete with domestic firms
  • Non-tariff: acts as a disincentive to sell into foreign markets, costs of meeting the non-tariff barriers may reduce profit margins
43
Q

What are the impacts of protectionist barriers on consumers? (quota, subsidy, & non-tariff)

A
  • Quotas: higher prices and less choice
  • Subsidy: lowers prices
  • Non-tariff: may reduce choice/variety in a market
44
Q

What are the impacts of protectionist barriers on the government? (quota, subsidy, & non-tariff)

A
  • Quotas: they don’t receive any tariff revenue (as there is no tariff), may receive higher tax revenue at the end of the financial year when domestic firms pay their corporation tax
  • Subsidy: costs the government the amount of the subsidy, opportunity cost
  • Non-tariff: may lose some credibility with the WTO, enforcing the non-tariff barriers may be difficult or expensive
45
Q

What are the impacts of protectionist barriers on living standards? (quota, subsidy, & non-tariff)

A
  • Quotas: reduces SoL for consumers as higher prices erode purchasing power of their income
  • Subsidy: improves SoL for consumers as they benefit from lower prices - their income goes further
  • Non-tariff: less choice & higher prices erode standards of living, product labelling information may improve decision making & life quality
46
Q

What are the impacts of protectionist barriers on equality? (quota, subsidy, & non-tariff)

A
  • Quotas: Improves for domestic firms but worsens for foreign firms
  • Subsidy: domestic firms can compete more equally
  • Non-tariff: may help improve equality e.g. environmental standards help create equal production inputs -> equality in the costs of production
47
Q

What is the current account and what does it comprise of?

A
  • It records the net income that an economy gains from international transactions

Includes:
- Trade in Goods & Services
- Net income: income transfers by citizens & corporations - credits are received from UK citizens who are abroad & send remittances home
- Current transfers: payments at government level between countries e.g. contributions to the World Bank

48
Q

What is the capital account?

A
  • Records small capital flows between countries and is relatively inconsequential

E.g.
- Debt forgiveness by the government towards developing countries
- Capital transfers by migrants as they emigrate & immigrate

49
Q

What is the financial account, and what are its subsections?

A
  • It records the flow of all transactions associated with changes of ownership of the UK’s foreign financial assets and liabilities
    1) FDI: flows of money to purchase a controlling interest (10%>) in a foreign firm - money flowing in = credit (+) & money flowing out = debit (-)
    2) Portfolio Investment: flows of money to purchase foreign company shares & debt securities (government & corporate bonds)
    3) Financial derivatives: sophisticated financial instruments which investors use to speculate & return a profit
    4) Reserve Assets: assets controlled by the Central Bank & available for use in achieving monetary policy goals - includes gold, foreign currency positions at the IMF & foreign exchange held by the Central Bank (USD, Euros)
50
Q

How does relatively productivity cause a current account deficit?

A
  • Low productivity raises costs
  • Exporting firms with low productivity may find themselves at a price & cost disadvantage in overseas markets
  • Decreased competitiveness & level of exports
  • Higher domestic prices -> consumers buy abroad -> increased imports
  • Falling exports & rising imports -> deficit
51
Q

How does a relatively high value of the country’s currency cause a current account deficit?

A
  • Currency appreciation makes a country’s exports more expensive relative to other nations
  • Foreign buyers look for substitute products with lower prices
  • Exports fall & current account balance worsens
  • Currency appreciation makes imports cheaper -> domestic consumers may switch demand to foreign goods & as imports rise, current account balance worsens
52
Q

How does a relatively high inflation rate cause a current account deficit?

A
  • Makes a country’s exports more expensive than other nations -> foreign buyers look for substitute products-> exports fall & current account balance worsens
  • High inflation may mean G&S are cheaper in other countries-> domestic consumers may switch demand to foreign goods & as imports rise, current account balance worsens
53
Q

How does rapid growth cause a current account deficit?

A
  • Rapid economic growth raises household income
  • Households respond by purchasing G&S with a high-income elasticity of demand (income elastic)-
    > many of these goods are imported & as imports rise, current account balance worsens
54
Q

How do non-price factors cause a current account deficit?

A
  • When a country develops a reputation for poor quality & design, its exports fall as foreign buyers look for better substitutes elsewhere
  • Domestic buyers who are able to shop abroad also choose to buy better quality products elsewhere & the level of imports rise
55
Q

What is the Marshall-Lerner Condition?

A
  • Specifies the circumstances under which a depreciation (or devaluation) of a country’s currency will improve its trade balance
  • According to this condition, a currency depreciation will only improve the trade balance if the combined price elasticity of demand for exports and imports is greater than one (elastic)
56
Q

What measures are there to reduce imbalances on the current account?

A

1) Do nothing - leave it to market forces in the foreign exchange market to self-correct the deficit
2) Expenditure switching policies
3) Expenditure reducing policies
4) Supply-side policies

57
Q

What are the costs and benefits of doing nothing to correct a current account deficit?

A
  • Benefit: floating exchange rates act as a self-correcting mechanism -> over time a higher level of imports will end up depreciating the currency causing imports to decrease & exports to increase -> improves the deficit
  • Cost: there may be other external factors that prevent the currency from depreciating - may take a long time for self-correction to happen & many domestic industries may go out of business in the SR -> the longer it takes to self-correct, the more firms will delay investment in the economy
58
Q

What are the costs and benefits of using expenditure switching policies to correct a current account deficit?

A
  • Benefits: often successful in changing the buying habits of consumers, switching consumption on imports to consumption on domestically produced G&S
  • Costs: any protectionist policy often leads to retaliation by trading partners, e.g. reverse tariffs/quotas which will decrease the level of exports - > may offset any improvement to the deficit caused by the policy
59
Q

What are the costs and benefits of using expenditure reducing policies to correct a current account deficit?

A
  • Benefits: deflationary fiscal policy invariably reduces discretionary income -> fall in the demand for imported goods & improves a deficit
  • Costs: deflationary fiscal policy dampens domestic demand -> output falls -> slow GDP growth & unemployment
60
Q

What are the costs and benefits of using supply-side policies to correct a current account deficit?

A
  • Benefits: improves the quality of products & lowers the costs of production - helps the level of exports to increase thus reducing the deficit
  • Costs: these policies tend to be long term policies so the benefits may not be seen in SR - usually involve government spending in the form of subsidies -> opportunity cost
61
Q

What is the impact of persistent trade deficits?

A
  • Persistent deficits - means that finance from abroad (e.g. loans, FDI) is required to fund continued imports -> may mean that a country is gradually selling its assets - owing money to a foreign entity creates vulnerabilities -> 2008 Financial Crisis demonstrated the impact of fast changing conditions in which creditors were insisting on being repaid quickly e.g. Greece owed creditors (including Germany) significant sums & was required to pay these back -> numerous problems in their economy
62
Q

What is the impact of persistent trade surpluses?

A
  • Persistent surpluses = the focus of the allocation of a nation’s resources is on meeting foreign demand instead of domestic demand - limits availability of G&S in the local economy -> decreased standard of living for households
  • Can also create instability in the foreign exchange market if there is a floating exchange rate mechanism in operation - e.g. China ran a surplus for years but didn’t let its currency float freely -> recently switched their focus to increasing domestic demand -> significant FDI by Chinese firms & the level of foreign asset ownership is high
63
Q

What is an exchange rate?

A

The price of one currency in terms of another

64
Q

What is a fixed exchange rate system? Give a real world example.

A
  • It fixes the value of one currency to another
  • Whenever changes in supply/demand move the exchange rate from its target - government intervenes
  • Until 2005, Chinese Yuan was fixed to the dollar - 8.28 yuan -> $1
65
Q

What are the two ways the government can fix an exchange rate?

A
  • Changing interest rates: high interest rates -> increase hot money flow -> investors need to exchange their currency for domestic currency to store in banks -> increase demand for currency -> depreciation
  • Foreign currency transactions -> sell its own currency -> increases foreign currency supply -> depreciation
66
Q

What is a managed exchange rate?

A
  • Government/central bank will intervene to keep exchange rate within a certain range
  • Before the euro, EU countries used to all keep their currencies within +/- 2/25% of each other
67
Q

What is a floating exchanging rate?

A
  • The government/central bank doesn’t intervene to manage their exchange rate - exchange rate is determined by supply/demand for domestic currency e.g. euro, pound, dollar, rupee
68
Q

What is the distinction between revaluation and devaluation?

A
  • Revaluation: when countries increase the value of their fixed exchange rate e.g. uk used to be fixed and revalued in 1925 - £1:$4.27 -> £1:$4.86 (14% rise)
  • Devaluation: when countries decrease the value of their fixed exchange rate
69
Q

What is the distinction between a nominal and real exchange rate?

A
  • Nominal exchange rate: price of one currency in terms of another
  • Real exchange rate: how much a currency is worth relative to the prices of G&S in another country
70
Q

What is the formula for real exchange rate?

A

nominal ER x domestic price level/foreign price level

71
Q

How are relative unit labour costs a measure of international competitiveness?

A
  • High unit labour cost -> each unit produced costs more in terms of wages -> higher production costs -> fall in SRAS -> increased price level -> exports more expensive -> less competitive.
72
Q

How are relative export prices a measure of international competitiveness?

A
  • Lower export prices -> more competitive relative to other countries
73
Q

What is the global competitiveness index and how is it a measure of international competitiveness?

A
  • Calculated annually by the World Economic Forum + accounts for: costs & prices, infrastructure, health, education, technology
  • The higher the index competitiveness rating, the more competitive
74
Q

What is the distinction between depreciation and appreciation?

A
75
Q

What factors influence international competitiveness?

A
  • Exchange rates
  • Wage costs
  • Non-wage costs
  • Supply-side policies
  • Also consider: productivity, regulation, taxation, investment, inflation
76
Q

How do exchange rates influence international competitiveness?

A
  • SPICED & WPIDEC
  • Depends on elasticity of good & firm reactions
77
Q

How do wage costs influence international competitiveness? Give a real world example

A
  • Increased wages -> increased COP -> decreases SRAS -> increases price level
  • In 2017 the UK increased national minimum wage from £7.20 -> £7.50
78
Q

How do non-wage costs influence international competitiveness? Give a real world example.

A
  • Regulations -> less health and safety standards in developing countries e.g. China
  • Pensions -> there is a mandatory pension scheme in Australia with employer contributions - not mandatory in Iran
  • Tax - 10% corporation tax rate in Macedonia and a 30% tax in Germany
  • Non wage costs are higher in developed countries
79
Q

How do supply-side policies influence international competitiveness?

A
  • Policies which aim to increase AS e.g. lower corporation tax, increased healthcare spending
  • UK has reduced CPT from 28% -> 19% since 2010
  • UK has decreased healthcare spending -> British firms have a £77bn annual loss in productivity due to ill health -> fall in LRAS -> increase in PL

Economics (34 decks)

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