Applied Economic Summary

Applied economics summary. Most of British manufacturing had increase the dependency on exporting sector ever since 20 years ago. This is proved by EEF , the organization which represents UK manufacturing companies said that many of the firms were coping well with the challenges occur. There were many reasons why exporting companies in British is a success , its affected by the fact that UK is a country with strong economic growth , well known in overseas country. However, USA and China been growing even faster annually which they’re performing better than UK did. Another reason that contribute to a success to this sector, it because UK companies have exploited niche markets. These markets had allowed them to exploit new technologies or make small numbers of products to order. As foreign owned firms were far way more expert in exporting, and they had a wide range of globalization, they can know more on how to exploit on other markets. Nevertheless, UK had to compete on price of cost of production. That’s why UK had exploit this trend by moving the factories at a low wage-cost country like China then , export the good worldwide. Production might be done in other country but the profits will go to UK.

Data question. 1. One of the reason why DEK is a successful exporter, its because the advanced technology they have. There’s variant type of machine which specialized on a 150 basic variants. It could be affected by the fact that DEK is one of the world largest maker of specialist printing machine for circuits board production that mainly used in electronics devices. Secondly, DEK is a company that give highly efficient production method , where their customer can expect the product to be ready two weeks after ordering. Because of this efficiency , they can produce more and more people would come for their service. 2. By making more factories in a low wage-rate country can produce more production. The fact that DEK have two fatcories , one is UK