International competitiveness
What International competitiveness means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of International competitiveness
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Reference: Pearson Edexcel
A measure better captured by an effective exchange rate than a single bilateral rate, because it reflects overall trade competitiveness.
The ability of local firms to undercut foreign competitors, which domestic subsidies support by lowering their production costs.
The ability of a firm to compete internationally, which exchange rate movements affect alongside a firm's costs and revenues.
The ability of a firm to compete, which improves when lower average costs raise profit margins.
A position that high inflation reduces, alongside eroding the real value of money.
Topics that use International competitiveness
- Conditions that prompt trade (Pearson Edexcel A-Level)
- Exchange rates (Pearson Edexcel A-Level)
- Possible macroeconomic objectives (Pearson Edexcel A-Level)
- Trade policy and trade negotiations (Pearson Edexcel A-Level)
Related terms
- Appreciation
- Capacity utilisation
- Current account
- Current account surplus
- Depreciation
- Domestic competition
- Economic growth
- Economies of scale
Using International competitiveness in the exam
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