International competitiveness refers to a country's or firm's ability to compete effectively in the global
International competitiveness involves producing goods and services that are attractive to international consumers relative to other countries or firms.
A country with a highly skilled workforce and innovative industries is likely to be more internationally competitive
Higher productivity can lead to lower costs and higher quality goods, enhancing international competitiveness.
A favorable exchange rate can make a country's exports cheaper
Lower labor costs can make production more competitive in international markets.
Match the factor with its impact on international competitiveness:
Productivity ↔️ Higher quality, lower costs
Innovation ↔️ Competitive edge
Exchange rates ↔️ Affects export prices
Higher productivity results in lower costs
Institutional factors such as government policies and infrastructure can significantly affect international competitiveness.
Institutional factors such as government policies, regulations, and infrastructure can affect competitiveness
A country with a highly skilled workforce is likely to be more competitive.
Match the factor with its impact on competitiveness:
Productivity ↔️ Lower costs
Innovation ↔️ Competitive edge
Exchange rates ↔️ Affect export prices
Labor costs ↔️ Affect production costs
Higher productivity leads to lower costs and higher quality goods
Lower labor costs can make production more competitive.
What is an example of a factor that affects international competitiveness?
Skilled workforce
The factors determining international competitiveness influence a country's or firm's ability to compete effectively in the global market
A favorable exchange rate can make exports cheaper.
International competitiveness refers to a country's or firm's ability to compete effectively in the global market
What is an example of a country that is likely to be internationally competitive?
Highly skilled workforce
Match the factor with its description:
Productivity ↔️ Efficiency in production
Innovation ↔️ Creation of new products/processes
Exchange rates ↔️ Value of currency relative to others
Labor costs ↔️ Cost of employing labor
Japan's high productivity in automobile manufacturing gives it a competitive edge.
Measuring international competitiveness involves methods to assess a country's ability to compete in the global market
What does a positive trade balance suggest about a country's exports and imports?
Exports are higher than imports
The export market share measures a country's exports compared to total world exports
Lower unit labor costs suggest a competitive advantage due to efficient labor use.
Match the method with its key metric:
Trade Balance ↔️ Exports - Imports
Export Market Share ↔️ \frac{Country Exports}{Total World Exports} \times 100\%
Unit Labor Costs ↔️ \frac{Total Labor Costs}{Total Units Produced}
Relative Productivity ↔️ \frac{Productivity of Country A}{Productivity of Country B}
Trade liberalisation involves reducing trade barriers such as tariffs and quotas
Investment in education and skills enhances workforce productivity.