Indholdsfortegnelse
Assignment 1
a) Based on appendix 1, calculate shares of Great Britain’s trade in 2018 and account for which countries that are the most important trading partners.

b) In appendix 5, it says that “… for the first time in the history of the EU, the trading bloc has entered into a large gold-plated international agreement that provides poorer conditions for trade and cooperation”. Thus, this agreement does not guarantee trade completely free from trade barriers.

Assignment 2.1

Assignment 2.2
a. As shown in appendix 6, British savings have increased from 6,5 % in 2019 to 19,4 % in 2020 and the same level is expected in 2021.

b. “Helicopter money is simply money thrown at consumers in the hope that the economy will set off”. This quote is from appendix 8.

Assignment 3
a) Competitiveness

b) Living standards

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Uddrag
In excel I have made Export to import shares index, meaning how much they export to a country contra how much they import. If the number is below 1, it would mean that Britain Import more goods from the given country than they export.

If the number is over 1, the opposite would be the case. With that being said, we can see that the country that imports the most from the UK while exporting the lowest is Switzerland.

Their shares number is at 3.4 or nearly 350% more. Furthermore, the country that they trade the most with is USA, so there could be an argument that its their most important trade partner.

Based on appendices 2, 3 and 4, explain the development of the British price
As we can see in appendices 2 the Indexed average labour costs for Great Britain compared to the OECD with a base year in 2015 has since 2009 been higher on average.

The development from 2009 to 2010 increased a bit from 100.2 to 100.6, but then faced a period of decrease throughout 2010 to 2012 to an index of 97.7. Since then, they faced a period of constant increase with a level of 103.8 in 2019.

As for the OECD since 2009 they have had a period of increase from 96.4 to 2019 where they have gone to a level of 104.3.

Obviously, it’s good for the United kingdom that labour cost is now cheaper in the UK than it is in other countries, since wages are one of the most important costs in producing a product. The lower the labour costs, the cheaper it obviously is to produce a product.

To look into appendices where we can see the productivity of the united kingdom compared to the OECD with a base year in 2015.

As we can see in appendices 3 the Indexed GDP per hour in Great Britain compared to the OECD with a base year in 2015 has since 2009 been lower on average, where in recent years ots a lot lowe.

The development from 2009 to 2010 increased a bit from 96 to 98.5, but then faced a period of little growth from 2010 to 2019 to an index of 100.7

The OECD on the other hand has had a period of steady growth since 2009 where they had an index of 94 but than is looking at a staggering 104.

This means that even though the wages are lower in the UK, they aren’t as good competitors because what they are actually producing is not up that great compared to the wages.

Lastly we will look into the currency of the UK. Because if the UK pounds falls in value, it becomes cheaper for customers abroad to buy Pounds, and thus cheaper for them to buy UK goods.

And for this case since 2015 the pound has increased in value, therefore it is not helping them compete on the global market as shown in the figure.