4.2.5- global competitiveness

Question 1

What is a competitive advantage?

Answer 1

An advantage over the competition gained by offering consumers greater value

Question 2

How can a business gain a competitive advantage?

Answer 2

1) cost
2) differentation

Question 3

What are three ways to reduce costs?

Answer 3

-waste minimisation
-good resource management
-effective production methods

Question 4

What are impacts of skills shortages?

Answer 4

-turn away work
-decline in competitive advantage

Question 5

What effects global competitiveness?

Answer 5

• exchange rates as costs of imports and exports
  -cost
  -differentiation
  -skill shortages compared to other countries