Macro A2 - International Competitiveness

Question 1

Relative unit labour costs

Answer 1

the average cost of labour per unit of output produced.

Question 2

Relative export prices

Answer 2

the prices of a country’s exports compared to the export prices of other countries.

Question 3

Factors influencing international competitiveness

Answer 3

• exchange rates.
• relative inflation rates
• Labour productivity
• ## Domestic education

Question 4

Benefits of international competitiveness

Answer 4

• exports will be cheaper, leading for export led growth.
• higher exports will lead to a increase in AD and economic growth.
• it will improve a country’s current account deficit
• creates jobs in the export sector.
• will help to reduce inflation in the domestic economy

Question 5

Top 10 globally competitive countries

Answer 5

1. Switzerland
   2.US
   3.Singapore
   4.Netherlands
   5.Germany
   6.Hong Kong
   7.Sweden
   8.UK
   9.Japan
   10.Finland