Economic Growth

This is an increase in the value of goods and services produced by the economy as a whole

Long term most countries experience economic growth

In the shorter term countries can experience slumps / decline in the size of their economy

Advantages

• It increases levels of taxation which the government can spend on public services
• Increases opportunities for all businesses / individuals
• Businesses experience higher sales and profits

Disadvantages

• Regional disparities
• Can lead to resource shortages especially for labour Increases pressure on individuals and businesses

Growth can be spurred on in the short term by decreases in interest rates and taxes, or by increasing Government spending

These measures create fluctuations in GDP

For the longer term the Government needs to increase employment (full employment), increase capacity, improving education and skills and promoting competition in markets

International Competitiveness

With the growth of free trade businesses now are having to compete internationally

This may be in order to increase profits and market share, or simply to wider their customer base to survive

In order to be competitive businesses must keep price affordable but keep the quality and features

Globalisation & Growth

Many businesses have welcomed the concept of globalisation as a chance to attract a wider audience

Other businesses have failed in markets of increased competition