INTERNATIONAL COMPETITIVENESS

Question 1

FACTORS THAT INFLUENCE INTERNATIONAL COMPETITIVENESS

Answer 1

~Real exchange rates
~Productivity
~Relative inflation rates

Question 2

WHAT IS INTERNATIONAL COMPETITIVENESS

Answer 2

This is measuring a countries ability to provide better valued goods and services for its rivals

Question 3

INTERNATIONAL COMPETITIVENESS PRICE FACTORS

Answer 3

~Relative unit labour cost
~Relative productivity
~Relative export prices

Question 4

INTERNATIONAL COMPETITIVENESS NON PRICE FACTORS

Answer 4

~Design
~Quality
~Reliability
~Availability

Question 5

GOVERNMENTS CAN IMPROVE ECONOMIC COMPETITIVENESS

Answer 5

~Improving education and training
~Improve labour market flexibility
~Create incentives for firms to invest
~Improve infrastructure
~Cut red tape (removing regulations)
~Encourage competitiveness
~Encourage immigration
~Maintaining economic stability

Question 6

GOVERNMENTS CAN INFLUENCE PRIVES MORE DIRECTLY

Answer 6

~Devalue currency, can lead to a rise in exports
~Tariffs
~Subsidies