Economics help blog – Page 49

The importance of international trade

25 September 202124 September 2021 by Tejvan Pettinger

International trade between different countries is an important factor in raising living standards, providing employment and enabling consumers to enjoy a greater variety of goods. International trade has occurred since the earliest civilisations began trading, but in recent years international trade has become increasingly important with a larger share of GDP devoted to exports and …

Difference between economic growth and development

2 December 202123 September 2021 by Tejvan Pettinger

Readers Question: What is the difference between growth and development? Can a country experience economic growth without development? In summary Economic growth means an increase in real national income / national output. Economic development means an improvement in the quality of life and living standards, e.g. measures of literacy, life-expectancy and health care. Ceteris paribus, …

Prospects for inflation in 2022

21 September 202121 September 2021 by Tejvan Pettinger

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In the past two decades, we have had a remarkable period of low inflation. Inflation has been so low, some economists have suggested a new paradigm – the end of inflation as a primary economic concern. Since 2009, any predictions of imminent inflation have proved to be wide of the mark. There have been warnings …

UK Grocery Market Share

1 July 202220 September 2021 by Tejvan Pettinger

The market share of leading supermarkets, in the UK grocery market industry. Market share 2014 – see: Battle for UK Supermarket market share Blog from 2012 The UK supermarket industry often makes a popular data response question. The five firm concentration ratio for the industry is 66% – a case of an oligopoly. Tesco – …

Effect of Labour Shortages

9 December 202113 September 2021 by Tejvan Pettinger

Labour shortages occur when employers struggle to fill labour vacancies because of insufficient labour applying for the jobs. Labour shortages can occur in geographical regions or in occupations with special requirements in terms of skill or function. Labour shortages can also be seasonal in industries like retail (Christmas) and agriculture (harvest time). Recently, since Brexit …

Slowbalisation – Is globalisation slowing down?

9 September 2021 by Tejvan Pettinger

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Slowbalisation – a phenomena which involves a slowing down of the pace of global integration.

In recent decades globalisation has become so dominant, that we often assume the process is never-ending. Between 1970 and 2008, world exports as a share of GDP rose from 13% to 31%, and it seemed that globalisation was an unstoppable force.

However, since 2008, something unexpected has happened. Exports as a share of GDP has flatlined and even started to fall. Other metrics show a similar fate, a fall in global bank loans, foreign direct investment has fallen quite sharply and multinationals share of profit has decreased.

Global Tariff Rates

9 December 20218 September 2021 by Tejvan Pettinger

This shows that in the past couple of decades, average global tariffs have continued to fall to less than 3% Falling EU tariffs to just under 2% The rise in US tarrifs in 2019, a reflection of the Trump trade war.

Reasons for shortage of lorry drivers in the UK

31 March 20227 September 2021 by Tejvan Pettinger

Back in 2015, I wrote a post about the shortage of lorry drivers in the UK. Six years on and the crisis has got worse. The Road Haulage Association states that a fully functioning UK economy requires over 600,000 drivers, but we are currently 100,000 short. The shortage of drivers is not unique to the …