1. http://www.bized.co.uk Copyright 2007 – Biz/ed UK Trading Position

2. http://www.bized.co.uk Copyright 2007 – Biz/ed UK Trading Position

3. http://www.bized.co.uk Copyright 2007 – Biz/ed Imports

4. http://www.bized.co.uk Copyright 2007 – Biz/ed Imports The purchase of goods and services by UK residents from abroad Imports represent a debit on the balance of payments account Imports may be purchased because: –They are better quality than those existing in the UK –They are not capable of being produced in the UK –The cost of production is lower than similar items produced in the UK –The service associated with such items may be better abroad than from UK producers

5. http://www.bized.co.uk Copyright 2007 – Biz/ed Exports

6. http://www.bized.co.uk Copyright 2007 – Biz/ed Exports Exports are the sale of goods and services by UK residents to foreign buyers Exports represent a credit on the balance of payments accounts The level of exports may be dependent on the competitiveness of UK producers in comparison to those abroad

7. http://www.bized.co.uk Copyright 2007 – Biz/ed Trade

8. http://www.bized.co.uk Copyright 2007 – Biz/ed Trade Trade not only occurs in goods and services but debits and credits are also recorded as a result of financial transactions, e.g. –Buying and selling of shares –Buying and selling of currencies –Buying and selling of bonds, financial derivatives, forward contracts, etc. –Movements of funds by governments and financial institutions – gold, Special Drawing Rights (SDRs), etc.

9. http://www.bized.co.uk Copyright 2007 – Biz/ed Goods Main categories of goods traded: Food, beverages and tobacco Oil Basic materials Coal, gas and electricity Semi-manufactured goods Finished manufactured goods

10. http://www.bized.co.uk Copyright 2007 – Biz/ed Semi-manufactured goods Goods having gone through a manufacturing process but which are purchased to contribute towards other manufacturing processes: Chemicals Precious stones and silver

11. http://www.bized.co.uk Copyright 2007 – Biz/ed Finished manufactured goods Cars Consumer goods Capital goods Ships and aircraft Intermediate goods

12. http://www.bized.co.uk Copyright 2007 – Biz/ed Services Services sometimes referred to as ‘invisible trade’ Purchase and sale of services an increasingly important component of UK trade Main categories of trade in services comprises:

13. http://www.bized.co.uk Copyright 2007 – Biz/ed Services Transportation Travel Communications Construction Insurance Financial Computer and information Royalties and licence fees Personal, cultural and recreational Government

14. http://www.bized.co.uk Copyright 2007 – Biz/ed Reserve assets Assets held by UK government and may be used in part to help correct balance of payments positions: Gold SDRs – Special Drawing Rights held at the International Monetary Fund (IMF) Foreign Exchange

15. http://www.bized.co.uk Copyright 2007 – Biz/ed Competitiveness

16. http://www.bized.co.uk Copyright 2007 – Biz/ed Competitiveness UK trading position heavily reliant on the changing nature of competitiveness across the globe: e.g the rise of countries like China and India – manufactured goods, call centres, etc. Has an impact on UK trade – what we trade, how much we trade and who with

17. http://www.bized.co.uk Copyright 2007 – Biz/ed Competitiveness Factors influencing international competitiveness important: –Level of domestic inflation in relation to our trading partners –Level of UK productivity in relation to trading partners –Level of investment in physical and human resources influences competitiveness –All affect the unit cost of production

18. http://www.bized.co.uk Copyright 2007 – Biz/ed Regional Trade

19. http://www.bized.co.uk Copyright 2007 – Biz/ed Regional Trade Importance of monitoring who we trade with, how this is changing and why? Helps identify changing global trading positions and conditions and how the UK might be able to influence this