1. THE INDUSTRIAL ECONOMICS OF BRITAIN'S ENTRY INTO THE E.E.C.--A FRAMEWORK FOR ANALYSING THE DYNAMIC EFFECTS.
- Author
-
Y. S. Hu
- Subjects
ECONOMIC conditions in Great Britain ,COMMERCE ,INVESTMENTS ,LABOR productivity ,SALES ,EXPORTS - Abstract
The article discusses the entry of European Economic Community (E.E.C.) in Great Britain and its subsequent effect on the growth of economy. Relative to other European countries and Japan, Britain's slower rate of growth during the last two decades was associated with a lower level of investment, a slower rate of growth of exports and a slower rate of growth of labor productivity. The relation between investment and exports is indirect. This arises because of the possibility of direct foreign manufacturing investment as an alternative to exporting when it comes to supplying foreign markets. The mechanisms by which membership of the E.E.C. can affect Britain's growth in exports, investment and productivity is classified under three headings according to the differences that entry will make compared to non-entry. The entry will effect the various adjustments in tariffs, the required removal of Great Britain control on direct investment outflow to other E.E.C. countries, and the "confidence" factor. With export sales, profit margin is likely to be lower or negative because of tariffs and higher distribution and marketing costs.
- Published
- 1974
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