The UK is an open economy and a rising share of output is exported overseas and a growing percentage of AD is satisfied by imports of goods and services. The UK currently is the world’s 8th largest exporter of goods and the 2nd largest exporter of services. In terms of capital flows, Britain has the highest ratio of inward and outward investment to GDP of any leading economy.
Over time, it is inevitable that the pattern and balance of trade in goods and services changes, reflecting shifts in comparative advantage and movements in relative prices of traded products in many international markets. The pattern of trade is also affected by the economic growth and development of particular countries or regions and by the foreign investment decisions of UK and overseas companies.
Read more here...
No comments:
Post a Comment
Note: only a member of this blog may post a comment.