Global Competitiveness Flashcards
1
Q
What is the impact of a appreciation of the pound
A
Import prices fall and export prices rise so there will be an increase in demand for imports
2
Q
What are the effects of depreciation.
A
Export prices fall meaning that export sales rise making the uk more competitive
3
Q
How can a business generate cost competitiveness
A
By offshoring
Outsourcing
Increasing productivity
Economies of scale
4
Q
What are examples of non price competiton that firms can use to gain advantage
A
Advertising Branding Differentiation Reputation Service
5
Q
What is the impact of skill shortages on competitiveness
A
When demand exceed supply of skilled workers the price of wages will rise
Cost and time of training new staff
Could mean that business are struggling to meet demands so can’t expand to oversee markets
