Test Essay on International Competitiveness

With reference to organisations or industries that you know, to what extent do you think that recent changes in the UK economy will have inevitably damaged the long-term profits of businesses that operate in this country? (40 marks)

Besides, I was looking upon the fluctuations (if any) of the market demand, upon current and new competitors and their strategies as well as for new markets and even new products and suppliers if they could offer better

The long-run equilibrium of the economy is found where the aggregate-demand curve crosses the long-run aggregate-supply curve (point A). When the economy reaches this long-run equilibrium, the expected price level will have adjusted to equal the actual price level. As a result, the short-run aggregate-supply curve crosses this point as well.

When there is a change of one of the factors of supply- like changes in the prices of production inputs like labour or capital; a change in production technology and its associated productivity change; or the amount of competition in a specific product market- there is a corresponding change in the supply curve. For example, if worker productivity improves due to some human capital or technology investment, then the costs of production decrease. This exerts a positive effect on the supply curve shifting it right, where the new market equilibrium is at a higher quantity and a lower price, holding everything else constant. There can also be a negative shift that moves the supply curve to the left, with the resulting market clearing price being higher and quantity lower, ceteris

In comparison with other competitive countries, Britain’s economy was also lagging behind. One aspect was that Britain’s GDP growth rate was the lowest in Western

things such as investment to kick start the economy (pg. 38). Showing that reductions can change

The price of products will drop which can lead to the growth of the economy if the taxes of big corporations will decrease. According to President Trump in the third debate on President Debate “When the company lower the taxes from 35% to 15% they have more money to spend on research, development, and producing things which can lead to growth”(para.2). Therefore,companies do not need to move from and buy or sell their products from other countries that raises the cost of their products only to avoid paying high rates here in the United States. If they will not have to pay high rate of taxes more products will be made here and these may cause a decreasing in the price of the products. The economy will expand again. However, we live in a country where business is all about competition.A country where business is pure capitalism which means business are owned and or manage by private owners for profits. They are only after the profits, they do not think about their consumers because we need their products to survive so we still buy them. Even though Money is only matters when it comes to business but by

If the taxes for business are lowered, the businesses will be able to increase employment, and that will lead to the unemployment rate further decreasing, which will improve economic growth. In addition to that, the businesses will spend more on supplies and as it spends more on supplies, other businesses will get higher demand, and that will lead to more money that can be spent on multiple things such as hiring people, and improving production, and management efficiency. Eventually, this will be a ripple effect, and the Canadian economy will

Which is cost difference determines the patterns of international trade. Absolute advantage is trade benefits when each country is at least cost producer of one of the goods being traded. In the 1800s, David Ricardo developed the theory of comparative advantage to measure gains from trades. This theory is based on comparative advantage and it states each nation should specialize in production of those goods for which its relatively more efficient with a lower opportunity cost.

The main exchange rates exposures are: British pounds, Deutsch Mark, Japanese Yen and Belgian Francs.

This in the long run could benefit other countries tremendously. It is even possible to cause the same effects of the supply-side policies in the US to occur in the other countries, like an increase in employment. Unfortunately, there are limitations on supply-side policies. In the case of the Laffer Curve for the years 1981 through 1989, total tax collections when adjusted for inflation, actually declined after 1981 tax

Haulage companies, firms working in complimentary industries (car manufacturers) and any firm using vehicles to transport their goods or staff would also benefit from a tax decrease. Haulage firms and those consuming petrol would benefit in exactly the same way as consumers, however they would see their profit margins rise as their costs went down. This could have additional benefits to an economy if companies used this profit to invest in expanding their business, employing extra staff and increasing tax revenue to the government (through corporate tax). If this was more than the loss of revenue from the decrease in tax, then the government might also gain from the tax reduction (this though is unlikely as it

These lower wages lead to hardships. As the consumer spends less, demand decrease, and jobs

International business today has exceeded more than any person has ever thought it would, countries are doing more trading and importing now than ever. International business can affect everyone, from small business owners to big companies all over the world. A country that comes to mind that does a lot of international business is the United Kingdom (UK). This paper will include the following: the background of the country, economic environment, government policies, international economic integration and business environment, and current events. By the end of this paper you will be able to know everything about the UK and if you want to construct business or take business out of this country.

Reducing VAT standard rate which is 8% for now can be considered as an incentives for more private sector and foreign investments when there is less tax over there transactions and imports specially when there is high VAT tax rate in neighboring countries also the real burden suffering group which is the public will show less resistance to the tax implementation which is a huge privilege to government, its impact over trade and regional businesses will be there however.