You are on page 1of 1

Wednesday, February 3, 2016

Economics Unit 4
Competitiveness

- Labour productivity
- Relative inflation rates
- Levels of infrastructure
- Cost of business
- Exchange rate

How to increase competitiveness


1 Education and training
2 Investment in infrastructure
3 Privatisation and deregulation
4 Devaluation
5 Limiting wage growth
6 Flexible labor markets

Benefits of being Internationally Competitive


1 Rising exports
2 Improve current account
3 Low inflation
4 Higher living standard
5 Lower unemployment

Problems
1 Appreciation could damage growth
2 Economy may become too reliant on exports