Competitiveness of the European Union in Light of Foreign Trade

Magda, Róbert and Bozsik, Norbert (2020) Competitiveness of the European Union in Light of Foreign Trade. POLGÁRI SZEMLE: GAZDASÁGI ÉS TÁRSADALMI FOLYÓIRAT, 16 (Spec.). pp. 413-422. ISSN 1786-6553

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Abstract

The main aim of this study is to analyse and present competitiveness in order to evaluate trends in the Member States of the EU. Competitiveness is explained at a corporate, national and regional level. Two important statistical indicators are considered for its calculation: the Commodity terms of trade (C), also known as the net barter terms of trade (N), and the Income terms of trade index (I), which communicates the correlation between changes in quantity and price. A stable economy requires surplus in the trade balance and improvement in exchange rate. The primary purpose of the goods export indicator is to capture the knowledge capital available in a country in order to provide characteristics and map the structure of trade for use as gauging tools. The three nations in which export surplus to GDP is very high are the Netherlands, Switzerland, and Ireland. Negative trade balances have been recognised in Romania, France, and the United Kingdom. As a result of changes in prices and volumes, nominal trading values were seen to rise continuously in 2018. Global commodity exports globally increased by 10 per cent, predominantly propelled by 20 per cent increase in oil prices. Rapid growth and development in innovation triggers increase in GDP and exports. Additionally, it is observed that export grows significantly faster in the Euro Area Member States than in non-EEA Member States.

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