• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Evaluate strategies which may be used by businesses and governments to improve the competitiveness of a countrys goods and services.

Extracts from this document...


Evaluate strategies which may be used by businesses and governments to improve the competitiveness of a country?s goods and services. Competitiveness refers to the ability of a firm to offer goods and services that meet the quality standards of the local and world markets at competitive prices which provide adequate returns on the resources employed or consumed in producing them. Competitiveness can be measured by price and non-price aspects, such as quality, advertising and innovation, and it can be promoted by both businesses and governments. Given that a firm is large enough and it has the ability to improve the competitiveness of the goods it produces it can follow the strategy of outsourcing. This is when a firm divides its production process in different parts of the world where it is able to find cheap methods of production. For example, many firms from the developed world locate their industries in less developed countries where there is cheaper labour, cheaper land, or lower corporation taxes. ...read more.


This new business will therefore be a free-rider as it will benefit from a trained worker, and thus higher skills and productivity, without having to pay for its training. This therefore creates a disincentive to firms in spending more on training and investing on human capital making it more difficult for them to find ways and improve competitiveness of their products. Governments can also find several ways in order to improve the competitiveness of goods produced in their country, as this would expand the country?s export industry leading to export-led growth, as well as reducing the deficit. Governments can increase incentive of firms to spend on R&D and innovation by providing grants and offering tax breaks if R&D is used. By doing this, a firm will have a greater incentive to spend more on R&D improving the quality of goods produced; more advanced products will be released in the market increasing consumer?s demand and thus non-price competitiveness will be improved. ...read more.


Spending on the New Deal was £1.3 billion in 2001. This helped to increase productivity levels in the UK and the price competitiveness of UK goods. However, schemes like the New Deal require a long period of time in order to have significant effects in the economy and increasing the competitiveness of the UK. Time is needed for educating people properly in order to join the labor force and apply their skills. Time is also needed in order to apply the new working methods people have learned and find an appropriate employment that suits to the skills they have gained. In conclusion, a lot of strategies can be applied in order to improve the competitiveness of the country; however, it is not so easy to be effective on the economy. Most of these strategies would have a positive effect in the long run as time is needed in order to apply these policies. This is the case with UK where a lot of strategies took place to improve competition of the country but it is still behind its competitors and it is ranked 20th out of the 59 economies covered by the WCY. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays

  1. Marked by a teacher

    International Business Strategy - Case Study on Unilever

    4 star(s)

    Many changes have been made that affect its human resource. Since 2004, the company has reduced its staff by close to 44,000 and it is still planning to reduce its workers further. Its plan is to close 50 more factories and 75 regional centres.

  2. Where does the World Trade Organisation fit in the overall scheme of international public ...

    It would have been a useful safety valve for the Mexico Ministerial. The way out of the morass in the run-up to Cancun may be to build consensus around light, evolutionary agreements that would be de minimis to begin with, e.g.

  1. Free essay

    does uk housing market warrant government intervention

    The very nature of a land use planning system means that the UK planning system will place some restrictions upon the supply of residential land. The problem is that in south east large increases in housing prices have not led to significant increases in land available for development.

  2. Why has GDP growth been so slow in Somalia?

    economic policies to stabilise the country's economy and raise standards of living. Another problem is that the tax authority may fail to detect the income earned through the black market. The official tax rates may have to increase as a result, to compensate for the losses.

  1. Outline the debate about whether 'export-led growth' is better or worse than 'import substituting ...

    In addition, import substitution industrialisation could not succeed without influence on the market by the state; popular support was therefore required not only to assure the wealthy elite with international links that the strategy would benefit them, but also the poor and working class, to ensure their cooperation.


    It approached the issue of technology transfer through initial consideration of its own needs and sought to indigenize imported technology through the acquisition of adaptive and innovative technical capabilities. In trying to adapt, organize and diffuse technology, Japan's experience was influenced by many concomitant factors.

  1. In what ways is the government attempting to increase the willingness to wor

    This shows at this time low unemployment meant high inflation. Unemployment peaked at nearly 10% in 1993, in the same year inflation was quite low at just above 2%. Since inflation has been relatively steady fluctuating between just less than 1% and 3% till today.

  2. Evaluate strategies which may be used by businesses and governments to improve the competitiveness ...

    This should help to boost the UK capital stock. It should also help the UK to keep attracting foreign direct investment which improves the competitiveness furthermore since British firms may gain from the advanced technology and innovation of foreign multinationals. (Technology transfer) However, if the government decreases corporation tax, there might be some firms that decide to save the retained profits instead of spending on investment.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work