Influences on Balance of Payments in Goods

Supply side policies

Education & training

Technology hubs

Tax relief for R&D

Policies to encourage investment in manufacturing equipment

relatively low Corporation Tax rates

None within EU

But EU has tariffs with other countries

barriers exist in emerging markets

WTO generally seeking to reduce barriers

Political reasons for barriers -e.g. Russia

Much of EU has been in recession

Not formally managed in UK

Hot money - interest rates

UK economic performance

Economic performance of other countries we trade with

Subtopic

Unemployment - youth

Close output gap