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    hey, need some help please on UK international Competitiveness.
    What range of quantitative and qualitative measures could be used to assess the international competitiveness of the UK economy??

    Thanks
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    anyone please?!
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    (Original post by wonkey)
    hey, need some help please on UK international Competitiveness.
    What range of quantitative and qualitative measures could be used to assess the international competitiveness of the UK economy??

    Thanks
    Quantitative factors could be

    -exchange rate
    uk's exports has been fairly strong since the mid 90s making our exports expensive and therefore uncompetitive in terms of price

    -comparative inflation rates
    uk's inflation rate is now relatively low in contrast to 70s and 80s
    low inflation in uk will make goods cheaper and more competitive

    -unit labour costs
    uk has a low output per worker compared to most developed countries.
    if the cost of labour unit of output is high the price of the output will be high making it uncompetitive.

    Qualitative could be

    -quality
    uk tends to export low technology, low quality goods partly due to lack of research and development

    -design
    uk not renowned for well designed products
    people will pay higher prices for well designed products

    -marketing
    foreign firms tend to invest more in sales, only half of uk firms do any research of foreign markets. accurate market research and convincing advertising campaigns are v important

    -delivery and after sales
    uk's delivery times tend to be relatively long and its after sales service relatively poor

    -income elasticity
    uk has a high propensity to imprt but the income elasticity of demand for uk exports is low so increases in demand may not be very beneficial.

    I'm not sure if I've answered your question but hope these points are helpful!
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    awwww..........boo! thanks so much, finally something positive. its not the 1st time u've helped me. could i just ask one thing.......does investing in capital equipment help? if yes.....in what way?? i'm struggling to develop that point. Thanks
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    (Original post by wonkey)
    awwww..........boo! thanks so much, finally something positive. its not the 1st time u've helped me. could i just ask one thing.......does investing in capital equipment help? if yes.....in what way?? i'm struggling to develop that point. Thanks
    hey i helped you too in the other forum!
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    and yes investing in capital equipments does increase international competitiveness
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    (Original post by TheWolf)
    hey i helped you too in the other forum!
    oh sorry wolf.......i thought i had already said thanks?!......but thanks anyway! i appreciate all the help.
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    (Original post by TheWolf)
    and yes investing in capital equipments does increase international competitiveness

    but how?
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    (Original post by wonkey)
    awwww..........boo! thanks so much, finally something positive. its not the 1st time u've helped me. could i just ask one thing.......does investing in capital equipment help? if yes.....in what way?? i'm struggling to develop that point. Thanks
    no problem, glad you found the notes useful.
    yeah, i just thought that typing out some notes to help you will help me along with my economics revision.

    does your teacher set you an essay every week to do?

    hmm.. public and private sector investment in human capital such as education and training and research and development can create a comparative advantage

    u can talk about the risks in specialistation.. vunerability to sudden and unpredictable changes in demand and supply conditions

    the uk has become more competitive in manufacturing industries and more competitive in service industries as they possess positive income elastciity of demand and have good prospects for long term growth
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    ah i c, i get it now......thanks. well my teacher set our 1st essay 2wks ago, and now he has set us a 6page report to do....... not fun! lol

    u must be really gd at econ?! seems like it......cos nothing comes up in my brain, lol.

    with exchange rates......if the £ gets stronger, our imports become cheaper, and exports become dearer.....does that make UK firms less efficient and therefore less competitive?? i'm just confused as to how UK firms become less competitive.......:s
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    (Original post by wonkey)
    ah i c, i get it now......thanks. well my teacher set our 1st essay 2wks ago, and now he has set us a 6page report to do....... not fun! lol

    u must be really gd at econ?! seems like it......cos nothing comes up in my brain, lol.

    with exchange rates......if the £ gets stronger, our imports become cheaper, and exports become dearer.....does that make UK firms less efficient and therefore less competitive?? i'm just confused as to how UK firms become less competitive.......:s
    i'm not v good at economics but thinking of studying it next year so need to get a good A2 grade this summer.

    6 pages?? i don't think we get enough homeworks! how much have you done so far?

    not too sure about the question actually
    i think a strong exchange rate helps to control inflation because home producers would face more international competition from cheaper imports and will cut their costs to remain competitive.
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    (Original post by *boo*)
    i'm not v good at economics but thinking of studying it next year so need to get a good A2 grade this summer.

    6 pages?? i don't think we get enough homeworks! how much have you done so far?

    not too sure about the question actually
    i think a strong exchange rate helps to control inflation because home producers would face more international competition from cheaper imports and will cut their costs to remain competitive.
    i personally think that indexation is good for the short term -to control inflation - basically in the short term it looks good but in the long term it is terrible - so in short leave all the shi* for the government to sort out :cool:
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    (Original post by *boo*)
    i'm not v good at economics but thinking of studying it next year so need to get a good A2 grade this summer.

    6 pages?? i don't think we get enough homeworks! how much have you done so far?

    not too sure about the question actually
    i think a strong exchange rate helps to control inflation because home producers would face more international competition from cheaper imports and will cut their costs to remain competitive.

    lol erm.......i've almost done 2sides.....terrible i know!
    with inflation.......does it cause uncertainty to foreign firms, so they'd be less willing to invest causing £ to depreciate?? i don't really understand how that works....y would rising prices discourage investment??

    also.......does that mean interest rates will be a factor that affects international competitiveness?? as it affects speculators....in the way they invest in our currency.....causing £ to either become stronger/weaker, and hence affecting imports and exports?!
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    The Dti has just undertaken a major review of the competitiveness of UK industry

    All the data, and background information, you could possibly want on this topic can be found here:

    http://www.dti.gov.uk/competitiveness/

    The free pdf report contains a useful summary of the main factors affecting UK international competitiveness

    Jim
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    (Original post by Jim Riley)
    The Dti has just undertaken a major review of the competitiveness of UK industry

    All the data, and background information, you could possibly want on this topic can be found here:

    http://www.dti.gov.uk/competitiveness/

    The free pdf report contains a useful summary of the main factors affecting UK international competitiveness

    Jim

    oh sweet, thanks Jim!
 
 
 
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