Theme 4:1.9:International competitiveness

Question 1

what are the measures of international competitiveness

Answer 1

-relative unit labour costs-total wages divided by output.The higher the number compared with other countries, the less competitive it is

-relative export prices-the price of uk exports compared to trading partners price of exports

Question 2

factors influencing international competitiveness

Answer 2

-exchange rates
-productivity
-regulation
-investment
-taxation
-inflation
-economic stability
-flexibility
-competition at home
-factors of production
-openess to trade

Question 3

benefits of international competitiveness

Answer 3

current account surplus
economic growth
high levels of employment and rise in wages due to increased demand
inflows of foreign investment

Question 4

problems on international competitiveness

Answer 4

export led growth can lead to dependency
competitiveness can be lost easily