Long term causes

• What is a significant cause of the UK's trade deficit?

  Much of the UK's trade deficit is due to structural factors.
• Why does a lack of capital investment affect UK firms?

  It leads firms to use older and more outdated technology.
• How does the productivity of Germany compare to that of the UK?

  Germany has 35% higher productivity per hour worked than the UK.
• What is the current growth rate of productivity in the UK?

  Productivity in the UK is only growing at 1%.
• What impact has deindustrialisation had on the UK economy?

  It has led to a decrease in the relative importance of industry and manufacturing.
• Why is it more difficult for the UK to export goods?

  Because services are harder to export than manufactured goods.
• How do natural resources affect a country's exports?

  Countries with a large amount of natural resources tend to export more.
• What is the effect of a small population on a country's current account?

  If a country has a small population and large natural resources, it tends to have a current account surplus.
• What factors contribute to a country's competitiveness?

  High labour productivity and a reputation for high quality contribute to competitiveness.
• How does corruption affect a country's ability to export?

  Countries with corruption find it difficult to export.
• What is a challenge for countries where it is difficult to set up a business?

  They tend to find it difficult to export.