4.1 International Economics
Unit labour costs for selected European countries, 2017, base year 2010 = 100.
Country | Unit labour costs |
Austria | 113 |
Hungary | 120 |
Estonia | 129 |
France | 107 |
(Source: http://www.oecd-ilibrary.org)
Explain how Estonia’s competitiveness could be affected by rising unit labour costs.
Ai এর মাধ্যমে
১০ লক্ষ+ প্রশ্ন ডাটাবেজ
প্র্যাকটিস এর মাধ্যমে নিজেকে তৈরি করে ফেলো
উত্তর দিবে তোমার বই থেকে ও তোমার মত করে।
সারা দেশের শিক্ষার্থীদের মধ্যে নিজের অবস্থান যাচাই
Three of Africa’s main trading blocs have agreed to form the Tripartite Free Trade Agreement (TFTA). This will create one of the world’s largest free trade areas, stretching across 26 countries with a combined GDP of around £1trillion.
(Source: https://uk.reuters.com/article/uk-africa-trade/mega-african-trade-bloc- paves-way-for-continental-commerce-idUKKBN0OR28M20150611)
Evaluate the effects of the growth of trading blocs such as the TFTA on global trading patterns.
This question has 3 part(s).
Using the example of cut flowers (Extract F), discuss how the concept of absolute advantage may lead to growth in Kenya. Use numerical or diagrammatic analysis in your answer
Extract F
Kenya has an absolute advantage in cut flowers
In the UK, 80% of cut flowers come via the Netherlands, although a significant proportion come from Kenya. Some Kenyan flowers come straight to the UK on direct flights from Nairobi, where entire terminals at certain airports are dedicated to flights exporting flowers.
Kenya flower production has three major advantages over the Netherlands: areas of high altitude with cool nights, which many flowers benefit from, proximity to the equator for maximum hours of sunlight, and cheaper labour. This means an end to seasonal production and the beginning of a 365‑day‑a‑year absolute advantage. The Netherlands has cost advantages in machinery and transport equipment, not flowers.
Cut flowers are now Kenya’s second largest export after tea, contributing around 1% of the country’s GDP. They are also one of the country’s largest sources of employment, with over 100000 people working directly in the flower industry and an estimated two million indirectly.
(Source: adapted from: https://www.economist.com)
The British pound fell by over 10% to a 30-year low against the US dollar after the UK voted to leave the European Union.
To what extent will this depreciation impact on future economic growth in the UK? (25)
