4.6.5 International competitiveness

• Higher productivity leads to lower costs and prices, improving international competitiveness

  True
• What does innovation contribute to international competitiveness?

  High-quality products
• Arrange the factors influencing international competitiveness in order of their direct impact on prices:

  1️⃣ Productivity

  2️⃣ Exchange rates

  3️⃣ Labor costs
• A weaker currency makes exports cheaper and imports more expensive, boosting competitiveness


  True
• What effect does a weaker currency have on exports?

  Exports become cheaper
• What is the role of lower labor costs in international competitiveness?

  Cost advantage
• Good infrastructure facilitates trade and enhances competitiveness
• A weaker currency makes exports cheaper
• If the UK pound depreciates against the US dollar, British goods become cheaper for American buyers
• Higher productivity lowers production costs and prices.

  True
• Why does higher productivity in Country A give it a competitive advantage over Country B?

  Lower production costs
• International competitiveness refers to a country's ability to sell its goods and services in international markets.
• A weaker currency can boost international competitiveness.


  True
• Developing new, high-quality products can increase a country's competitiveness
• What are the key factors influencing a country's international competitiveness?

  Productivity, exchange rates, labor costs, innovation, infrastructure
• A stronger currency makes exports cheaper and imports more expensive.

  False
• A weaker currency makes exports cheaper
• A stronger currency reduces a country's competitiveness.


  True
• How does a depreciation of the UK pound against the US dollar affect British competitiveness?

  Increases competitiveness
• What happens to UK exports if the UK pound depreciates against the US dollar?

  Exports increase
• A stronger currency makes exports cheaper and imports more expensive.

  False
• Productivity is a crucial factor in determining a country's international competitiveness
• What is the primary goal of productivity-enhancing government policies?

  Boost workforce skills
• International competitiveness is a crucial driver of economic growth.


  True
• Match the factor with its impact on competitiveness:

  Productivity ↔️ Lower costs and prices

  Exchange Rates ↔️ Cheaper exports with a weaker currency

  Innovation ↔️ Develop new, high-quality products

  Labor Costs ↔️ Reduced costs for firms
• International competitiveness refers to the ability of a country to sell its goods and services in international markets
• Lower labor costs can give a country a cost advantage
• Match the factor with its impact on international competitiveness:

  Productivity ↔️ Lower costs and prices

  Exchange rates ↔️ Weaker currency boosts exports

  Labor costs ↔️ Cost advantage
• How does higher productivity reduce costs in international competitiveness?

  Lower prices
• Exchange rates are the values at which one currency can be exchanged for another
• Higher productivity leads to lower costs and prices
• Match the currency status with its impact on competitiveness:

  Weaker currency ↔️ Exports become cheaper

  Stronger currency ↔️ Exports become more expensive
• Exchange rates influence international competitiveness by affecting export and import prices.

  True
• What happens to exports when a currency becomes stronger?

  Exports become more expensive
• What happens to Japanese exports to Europe if the Japanese yen appreciates against the Euro?

  Exports become more expensive
• Higher productivity improves a country's cost competitiveness
• Lower productivity reduces a country's competitiveness.

  True
• What impact does higher productivity have on international competitiveness?

  Lower costs and prices
• How do lower labor costs affect a country's international competitiveness?

  Cost advantage
• Good infrastructure enhances trade and competitiveness.


  True