International competitiveness

?
View mindmap
  • international competitiveness
    • Terms of Trade
      • a measure of a countries export prices in relation to a countries import prices
      • improving
        • export prices rise faster than import prices
        • ^ living standards
      • worsening
        • export prices rise slower than import prices
      • Prebisch - Singer hypothesis
        • primary product dependant countries
        • manufactured goods are more elastic in terms of demand
        • commodities prices rise slower than manufactured goods prices
      • probelms for developing economies
        • decrease buying power of exports = difficult to buy imports
        • fall in living standards
        • hard to service foreign debt
        • worsens foreign exchange gap
    • factors influencing competitiveness
      • exchange rates
      • quality
      • tax
      • inflation
      • cots of raw materials
    • Relative unit labour costs
      • decrease labour costs
        • ^ output per worker
      • costs include:
        • wages
        • recruitment
        • training
        • pensions
        • equpiment
    • relative export prices
      • fall in RXP
        • our export prices rise at a slower rate than competitors exports

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all international competitiveness resources »