International cometitiveness Flashcards
1
Q
What is international competitiveness?
A
The ability of a country to produce goods and services of a quality and price that is attractive to consumers abroad
2
Q
What are measures of competitiveness?
A
Unit Labour costs
Export prices
Inflation
Interest rates
The current account of the balance of payments
3
Q
How would a rise in productivity increase competitiveness?
A
It will increase efficiency
Lower production costs
Export prices are cheaper
4
Q
Benefits of competiveness
A
Increased FDI
Economic growth
Employment
Buy assets abroad
5
Q
Negatives of competitiveness
A
May not last in the long run
Overdependence
6
Q
How can governments increase competitiveness?
A
Increased capital spending
Research and development
Privatisation
Education and training
Removal of regulation
