Economics Essay

UK EconomyYour name HereIn 2002 , the un physical exercise roams in Spain , France and Italy were importantly high than in the UK . Examine the factors which might explain wherefore the UKs un involvement stride was littleer than in these countriesUnited Kingdom s Economic funky Unemployment AdvantageIn 2002 , tally to the Organization for Economic Co-operation and Development (OECD , UK s standardized unemployment stray is 5 .1 . For France the standardized unemployment lay is 8 .9 , for Spain is 11 .5 spot for Italy is 9 .0 . Let us examine first why UK had this paltry unemployment rate compared to the France , Spain and Italy . First UK is very lovely to foreign investors compared to France , Italy and Spain . This is partly because UK has a proven track record of expose stableness strengthened by its government ec onomic policies . UK has ane of the close to stable exchange rates which equates to stability for investors . subjoin in foreign investors overly means an increase in employment , resulting in lower unemployment rate . If UK had not been attractive to investors , in that respect would view been no rise in real gross domestic product in UK brought rough by new business and expansions in 2002 . An another(prenominal) determining factor factor of the low unemployment rate is the sweat environment in UK . UK is home of highly skilled and kinetic labour drag . Its pool of men comes from top universities and happy by R D centimeers (Research and Development . This workforce together with UKs less tapering laws for labour generates high level of employment . In terms of innovation UK is far advance compared to France , Spain and Italy . Although UK has save 1 per cent of the homo s population but conducts 5 .5 per cent of international research (OIPA , 2005 . Innovatio n promotes more investment funds and oliba! num lowers unemployment . Another factor that makes UK s unemployment rate low is its organism a leader in world trade .

UK is instant in the world in terms of exports and third in the world in terms of imports . The magnitude of trade is an quality that on that point is a corresponding high level of workforce tin can this trade There are also a sizable proportion of world s leading companies who reside in UK . These companies give stability and maintain the employment force in UK . If assume that UK was not a leader in exports and imports , the economic indicators wake UK as having roughly 50 exports to other Europea n countries would need shown otherwise . Another most significant subscriber that makes UK s unemployment rate low is its low valueation compared to other European countries . The bodily tax , which is at 30 , is relatively low compared to other key European countries . The Value Added Tax (VAT ) in UK is also lower than most European countries . Lower corporate tax and lower VAT induces more investment and thus decreases unemployment rate . Let say for example we are a troupe from another country like Japan and we valued to lose some presence in Europe . logically , if we have France , Spain , Italy...If you want to get a full essay, effect it on our website: OrderCustomPaper.com

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