competitiveness

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  • Created by: Fi Alade
  • Created on: 20-04-14 11:43
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  • Competitiveness
    • Measures
      • relative unit labour costs - expressed in an index number
      • relative productivity measures e.g. output per worker per hour
      • global competitive index by WEF
        • 12 pillars of competitiveness
          • e.g. innovation, health and primary education, goods market efficiency, infrastructure etc.
      • exports compared to imports
        • if export prices rise faster than import prices country loses competitiveness
          • increased incentive to import
    • influences
      • real exchange rate
        • nominal exchange rate x domestic price level       --------------- foreign price level
      • wage costs and non-wage costs
        • high wage costs = high prices
        • health and safety regulations
        • NI contributions
        • environmental regulations
      • labour productivity
      • education and training
        • human capital
      • infrastructure
      • labour market flexibility
        • ease of hiring/firing, trade unions etc.
      • quality
    • ability to sell its goods and services across domestic and international markets
    • govt. policy
      • supply side policies
        • increasing occupational mobility
        • macroeconomic stability
          • low and stable inflation rate, steady economic growth
        • reducing red tape
        • improving infrastructure
        • privatisation

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