Extract C (lines 20–22) states: 'structural weaknesses continue to hamper international competitiveness. Reversing the productivity puzzle is essential if we are to improve our net export position.'
Explain how an increase in labour productivity can affect the UK's balance of trade in goods and services.
310 exam-style questions on AQA A Level Economics 2.6 The international economy (A-level only), covering 2.6.1 Globalisation, 2.6.2 Trade, 2.6.3 The balance of payments, 2.6.4 Exchange rate systems, and 2.6.5 Economic growth and development. Each one has a worked solution and a mark scheme showing where the marks go.