Th4.1: Problems with Competitiveness

Question 1

However, the problem with being internationally competitive is…

Answer 1

that this competitiveness can easily be lost

Question 2

How can developing countries lose their competitiveness?

Answer 2

developing countries who have benefits due to lower costs of labour and costs of materials e.t.c could see this eroded when they experience export led growth due to their competitiveness

Question 3

What may a current account surplus lead to?

Answer 3

a rise in the exchange rate, reducing their competitiveness

Question 4

What may less competitive countries do to protect themselves?

Answer 4

implement trade barriers

Question 5

Countries who are competitive may become more…

Answer 5

dependent on overseas countries and so this may mean they suffer from larger issues if there is a global recession