In recent years the UK had a comparative advantage in a number of manufacturing industries such as textiles or motorcycles. This was because the UK had lots of natural resources and raw materials, trained workers and lots of relevant machinery.
However, now this comparative advantage has been lost to other areas of the world particulary Asia. They have extremely cheap labour, new technology and low transport costs.
The UKs comparative advantage now may well be in:
- Financial services (insurance/banking)
- Tourism
- Music
Comments
Report