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

Outline the evidence presented in the data which suggests that the UK has lost international competitiveness in recent times.

Extracts from this document...

Introduction

The UK's International Competitiveness 1.) Outline the evidence presented in the data which suggests that the UK has lost international competitiveness in recent times (10 marks) As figure 97.11 shows, there was an overall decline in employment in tradable goods and services in all regions of the UK apart from the South West, South East and East Anglia. The tradable goods and services included agriculture, mining, manufacturing, external financial and business services and the armed forces. With the index being 100 in 1971, employment in tradable goods and services decreased to 85 by 1988. This then rose to 87 in 1992 but then fell again to 81 in 1998. So overall employment in tradable goods and services fell by about 19. However, there was also a decline in employment in non-tradable services. During 1971-1998 the graph shows fluctuations but the decline was not as dramatic as tradable goods and services as overall employment in non-tradable services only decreased by 3 from 100 to 97. Figure 97.12, the innovation index of 1996, shows that the UK came 13th out of 17 industrial nations in terms of its ability to derive commercial benefits from science and technology. The innovation index is based on factors such as number of patents granted, inventions and research and development. The low rank in 1996 is due to the UK having only 87 international patents per 1,000 scholarly mentions of scientists' work during 1975-1995. ...read more.

Middle

As well as increasing the importance of innovation, increasing the returns to products with a large knowledge component is the way businesses are competing. These developments lead to a crucial role for entrepreneurs in identifying and exploiting the economic opportunities presented by rapid change. Also for investors, who may find companies' wealth-creating potential increasingly tied up in intangible assets such as the knowledge of the workforce. The White Paper, released by the Department of Trade and Industry suggests that in order to achieve economic prosperity in the future, we require: - the capacity to exploit science and technology - enterprise and innovation - people and skills - collaboration between companies operating in networks and clusters - greater competition to increase innovation and consumer choice Due to the strength of the media, entertainment and financial services, the paper says the UK is in a strong position in many areas of the knowledge economy. Also, if the government wants to promote economic growth and stability they need to be aware of the need to develop - the skills of the science-based industries, technology, innovation and effective capital markets are all required. As mentioned before, the increase in knowledge-based employment and exports, expresses the importance of knowledge to the UK. For this reason, the composition of UK output is already changing to reflect this and it could help restore the UK's international competitiveness. ...read more.

Conclusion

This could be seen as an expression of the government's unwillingness to think big. Bereft of any big ideas about the economy, the baton is being handed to individuals, who, on the whole, have the least power in the economy. Another problem is that the promotion of entrepreneurship goes beyond its very narrow economic focus. It is quickly becoming a new form of social engineering. For example, the Democrats' idea that 'schools should be encouraged to experiment with different approaches to blur the lines between formal education, work experience and entrepreneurship'. It could be argued that children should be left alone to study Maths and English and to let them enter work when they are adults. People used to be worried about small businesses surviving but now there are about 23 million out there. Since our economy is rapidly changing it creates new opportunities for small business owners everyday. New technology has opened thousands of new opportunities and especially with the internet making a small business available to thousands of people around the world. The impact of Entrepreneurial companies has been beneficial as about 600,000 new companies are incorporated every year. Small businesses employ more than 50% of the workforce and generate more than half of GDP. Nowadays, entrepreneurs are presented as the most creative, innovative and dynamic section of society, and increasingly courted by the Labour government. If UK chancellor Gordon Brown gets his way, entrepreneurship - the fostering of entrepreneurial activity - will become central to economic policy in the coming years. ...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

    Assess the importance of international trade to the UK economy

    4 star(s)

    Despite the influence of globalisation, the UK tends to do the majority of its trade with its neighbours. The UK's major trading partner is the European Union. Since joining the EU in 1973, the proportion of trade with the EU has risen substantially, currently the exports account to approximately 59% of all UK exports, and 56% of all UK imports.

  2. International entrepreneurship in Europe

    (1993). International Entrepreneurship: Theory and Practice. London: Thomson Learning. GIAMARTION, MCDOUGALL, and BIRD assessed the current state of the field of entrepreneurship by surveying one hundred forty-seven Entrepreneurship Division members. They identify opportunities and hindrances to the internationalization of entrepreneurship, and examine the appropriate role of the Entrepreneurship Division as well as the Academy of Management in internationalizing.

  1. Free essay

    does uk housing market warrant government intervention

    in the economy having a positive effect on local businesses and traders. This will result in relatively large increases in the standard of living. However these large increase in standard of living are not shared out equally across the country because house prices are not rising at the same rate

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

    High density development results in significant savings to the government by reducing both the capital and operating costs of police, fire and waste collection and disposal services. Infrastructure may also be cheaper. For every rural community there must be a school and medical centre (or hospital, depending on the size of the community)

  1. Free essay

    Globalisation and changing career patterns

    But it had a huge impact on global markets. Following Levitt's creation of the term, the early 1980's saw the word globalisation first used in sociological terms when considering the changing and ever increasing ease of movement of people, goods, information, and money on a global scale (Scholte, 2005).

  2. HOW DID JAPAN ACHIEVE INTERNATIONAL COMPETITIVENESS IN TEXTILE INDUSTRY? EXPLAIN THE ROLE OF THE ...

    Implicitly, the organization for economic co-operation and development, argues that in order to wider economic growth and social development., developing countries need ever expanding access to markets of major industrial countries, and growth in exports of textile is central to this process.

  1. Feminist approaches to the study of international relations theory

    This essay however will only look at the one in more detail and give a brief description of several others. Feminism is an ideology which has different variants, the most well known ones are Liberal feminists and Radical feminists,

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

    through the pursuit of a Corporate Social Responsibility agenda that could impose labour, environmental and other standards on developing countries under conditions where they may not be appropriate.13 Moreover, this is a profoundly illiberal vision, whose distrust of markets and faith in government intervention (now at the global level)

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