british economy: lawrence lui frank fritsch. department of trade and industry
Post on 26-Dec-2015
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British Economy:
Lawrence Lui
Frank Fritsch
Background
• World’s eight largest exporter of goods (£ 191 billion in 2004)
• Second largest exporter of services (£ 96 billion in 2004)
• Exports are equivalent to around one-quarter of GDP
• Highest ratio of inward and outward investment to GDP of any leading economy
Goals
• Living standards and the competitiveness of our industry depend on our ability to trade and invest freely
• Maximizing the opportunities for international trade
• Liberalization
• Opening the markets of developing countries
Trade and Investment: how the UK benefits
• lower prices and wider choice for consumers• Promotes economic growth in developed and
less developed economies
UK trade and investment
• UK Trade & Investment is the Government organization that supports companies in the UK doing business internationally and overseas enterprises seeking to set up or expand in the UK
UK trade and investment
• Has contacts with over 200 different UK embassies that will help with the trading policy
Gains from liberalization
• Since then, average industrial tariffs of developed countries have fallen from nearly 40% to less than 5% through eight rounds of multilateral trade liberalization
• A more liberal investment environment has facilitated increased overseas investment
• By 2003 the world stock of foreign direct investment was equivalent to 23% of world GDP compared with 6% in 1982
Current: Trade Deficit
• Narrowed to 3.9 billion pounds ($6.8 B)
• Compared to 5.8 billion pounds in August
• Export to EU down 3%• Exports to rest of world
up 9%
Developing Countries & Trade
• Competitive domestic markets
• promotes greater use of the market
• more stable and less arbitrary policy intervention
• stronger competition
• macro-economic stability
Involvement in multiple organizations to help international trade.
• Special/Differential Treatment in the WTO• The United Nations Conference on Trade and
Development (UNCTAD)• Economic Partnership Agreements (EPAs)• The Generalized System of Preferences (GSP)• EU Free Trade Agreements (FTAs)• Current: Indo-British Partnership Network (IBPN)
Presidency of the EU and DTI's four main goals
• Better regulation
• Open and sustainable markets in an outward facing Europe
• Boosting our economies’ potential for research and innovation
• Promoting employment
• Current: EU budget rebate proposal for 2007 - 2013
WTO: G8 (G7)
Group of 7/8•Leaders discuss ways to address major economic and political issues
•Who are the G7 Finance Ministers and what is their role?
Chancellor: Gordon Brown
• The Chancellor of the Exchequer is the title held by the British cabinet minister responsible for all financial matters
• He also has oversight of public spending across Government departments, and is generally second only to the Prime Minister in political power
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