int competetive

Question 1

international competitiveness

Answer 1

ability of austrlian businesses to compete in world market on price or quality

Question 2

factors impacting- productivity

Answer 2

level of output gained from a given quantity of inputs.
- low productivity translates into higher production costs. hence less favorable supply factors, exports become less attractive tweaking int competetive.

Question 3

factors impacting- production cost

Answer 3

-minimum wage, compulsory superannuation, leave entitlemnt, worker compensation
-utlity costs. (electricity, gas, transport)
-raw material/production cost
-interest rates charged on firms borrowing bank credit for business expansion

Question 4

factors impacting- exchange rates

Answer 4

depreciating exchange rate will mean that the price paid for exports will be lower and demand will increase. increasing int competitive

appreciating exchange will increase the price of exports, decreasing int competitiveness as foreigners will have to exchange more for the same amount.

Question 5

factors impacting inflation rates

Answer 5

lower growth in prices (disinflation) or reduction in prices (deflation) will make AUS goods and services relatively more competitive.

Question 5

factors impacting- natural resources

Answer 5

discovery of new natural resources will increase supply, lowering prices, and increase competitiveness.

• as Aus has access to so much coal. int competitive is increasing as can have low prices. (compared to somewhere where production cost is a lot to find coal.