Kategoriak: All - productivity - competitiveness - investment - services

arabera steve whiteley 9 years ago

222

Influences on Balance of Payments in Goods

The balance of payments in goods is influenced by several key factors, including exchange rates, economic performance both domestically and internationally, and trade barriers. The UK does not formally manage its exchange rate, which can impact trade competitiveness.

Influences on Balance of Payments in Goods

Influences on Balance of Payments in Goods

UK productivity

Close output gap
Unemployment - youth

Move to services

Subtopic

Exchange rate

Not formally managed in UK
Economic performance of other countries we trade with
UK economic performance
Hot money - interest rates

Demand in export markets

Much of EU has been in recession

Trade barriers

Political reasons for barriers -e.g. Russia
WTO generally seeking to reduce barriers
barriers exist in emerging markets
None within EU
But EU has tariffs with other countries

Competiveness of UK produced goods

Supply side policies
relatively low Corporation Tax rates
Policies to encourage investment in manufacturing equipment
Tax relief for R&D
Technology hubs
Education & training