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4.9 (International Competitiveness) - Coggle Diagram
4.9 (International Competitiveness)
Definition - The ability of a nation to compete successfully overseas and
sustain improvements in real output and living standards.
Factors influencing
Ability to attract FDI from MNCs
Ability to produce or attract entrepreneurs
Ability to sttract skilled labour from abroad
Exchange rate
Unit labour cost
Quantity and quality of skills possessed by nations workforce
Flexibility of labour
Economic stability (inflation
Tax policy
Regulation
Innovation
Interest rates
Regulation
Benefits of being internationally competitive
Economic growth
Job creation
Inwards FDI
Access to broader markets
Diversification of businesses
Problems of being internationally competitive
Limitations to public spending
Potential reduced inefficiency of government spending
Reduced infant industries