UK
needs to focus on exports to increase growth
What we need to do to allow it
do it
-
Increase
import taxes
-
Manipulate
the value of the exchange rate, through decreasing the pound. May lead to
inflation, floating exchange rate, interest rates can�t go any lower (short
term)
-
Restructuring
out economy (long term)
-
Reduce
corporation tax, attract more inward investment, higher exports of manufactured
goods
-
Invest
in education and training, to increase productivity and efficiency.
-
Invest
in technology, more productive
-
Implement
more supply side policies, reducing minimum wages
-
Decrease
bureaucracy
-
Export
credit guarantee, trade and investment
Benefits
of exporting goods overseas
-
Increased
revenue for firms
-
Improve
balance of payments
-
Increased
aggregate demand
-
Create
jobs
-
Brings
more money into our economy
-
Higher
tax revenue
Disadvantages of
exporting goods overseas
-
Inflation,
from demand pull inflation, maximum capacity
-
Externalities,
pollution
-
Companies
may move abroad outward� investment� BRIC
-