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Question 1

International competitiveness

Answer 1

The ability of a nation to compete successfully overseas and to sustain improvements in living standards and output

Question 2

Components of international competitiveness

Answer 2

• price competitiveness
• non- price competitiveness
• ability to attract FDI

Question 3

Unit labour costs

Answer 3

Total labour cost/ output

Question 4

Relative export prices

Answer 4

Ratio of one country’s export prices relative to another country

Question 5

Factors that influence international competitiveness

Answer 5

• unit labour costs
• labour flexibility
• labour skills
• tax regimes
• innovation
• infrastructure
• regulation
• economic stability