4.1.9 International competitiveness

• 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.