International Competitiveness - created from Mind Map_1_1

Measures of Competitiveness Relative Unit Labour Costs Relative Export Prices Export Prices compared to Import Prices Productivity & Unit Costs of Production Current Account/BOP

Factors Influencing Competitiveness Price Factors Non-Price factors

Government Policy

International Competitiveness is the ability of a nation to compete successfully internationally and sustain improvements in real output and wealth.

Measures of Competitiveness Relative Unit Labour Costs Relative Export Prices Export Prices compared to Import Prices Productivity & Unit Costs of Production Current Account/BOP

Relative Unit Labour CostsCalculation: Total Wages/Real OutputA rise in unit labour costs relative to other countries causes a fall in competitiveness relative to other countries.  However, a fall in relative unit labour costs shows increased competitiveness.  

International Competitiveness

Measures of Competitiveness