4.2.5

Question 1

Definition of Global Competitiveness

Answer 1

The ability to perform better than its rivals across markets in different countries

Question 2

Explain effect on a business for appreciation

Answer 2

-If Importing, goods are cheaper
-If Exporting, goods to foreign consumers are expensive

Question 3

Explain effect on a business for depreciation

Answer 3

-If Exporting, goods to foreign consumers are cheaper
-If Importing, goods are more expensive

Question 4

Definition of Cost Leadership

Answer 4

When a business becomes the lowest cost producer in the industry

Question 5

4 ways Cost Leadership can be achieved

Answer 5

-Increase Productivity
-Using technology efficiently
-Offshoring
-Outsourcing

Question 6

Definition of Differentiation

Answer 6

When the business makes the characteristic of their product different to those of their competitors

Question 7

4 ways differentiation can be achieved

Answer 7

-Strong brand
-Better design
-Better quality
-Customer service

Question 8

How does skill shortage affect Cost Leadership

Answer 8

-If workers lack skills they may not be as productive
-This could increase unit cost

Question 9

How does skill shortage affect Differentiation

Answer 9

-If workers lack skills they and expertise they may not be as productive