​a) The impact of movements in exchange rates
b) Competitive advantage through:
o cost competitiveness
o differentiation
c) Skill shortages and their impact on international competitiveness

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Exchange Rates

How do exchange rates impact competitiveness?
What can a business do to try and protect itself?

In the build-up to and aftermath of the EU referendum, in June 2016, the pound fell by an average of 20% against other currencies.
Companies selling their products abroad were expected to be the winners of this depreciation because their goods would become cheaper and more attractive to foreign buyers.

So has there been a boost in exports driven by the weak pound? The Office for National Statistics (ONS) says yes.

It found the growth in the amount of physical goods being exported by the UK manufacturing sector rose sharply after the referendum, with growth hitting a peak of 9.7% in March 2017. Of course, exporters can't react immediately to currency fluctuations, so you would expect to see a lag effect.

The ONS statistics show businesses are not only selling more abroad - partly, but not solely by dropping prices - but they are also making more money from each product they sell abroad, by cutting prices by less than the drop in sterling and taking extra profit when converting the price paid abroad back into pounds.

​http://www.bbc.co.uk/news/uk-41268585

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Competitiveness

What strategies can UK firms implement to maintain and create an international competitive advantage? 

Bright future for British engineering | FT Business
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How the UK's JCB Took On the World | The FT
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Skill Shortages

What skill shortages are affecting the UK?
What options do firms have in response? 

The UK Skills Gap
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U.K. skills shortage
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