Macro economics Coursework Example | Topics and Well Written Essays - 500 words - 1

Macro economics - Coursework Example For instance, this will help boost the manufacturing sector which has faced competition from other countries such as china and the United States. One of the major benefits of the increased growth in exports is reduction in unemployment. Many individuals will be in a position to find jobs in most sectors in the economy due to increased demand of goods and services. Sectors that have been dormant for many years will be revived as a result of increased exports. By increasing exports, the UK will ensure that the cost of these exports is substantially reduced and the quality is enhanced. For example, The UK can achieve to reduce the cost of its exports by reducing the wages. When this happens, the UK will become attractive to other countries, and this will lead to more exports. In addition, by increasing the exports and making them cheaper and of higher quality, the UK will ensure that the population buys local products as opposed to relying on imports. The increase in domestic demand is important for economic growth. Increase in exports will also make the UK currency more valuable compared to other countries in the global economy. If the UK is importing more than exporting, it simply means that it selling its currency in order to buy the foreign currency so that it can import the goods and services. This has the effect of making the exports more expensive and making the imports cheap. In the end, domestic buyers will be encouraged to buy from outside markets. However, when exports are made cheaper, the currency becomes strong, making the UK competitive in the global market. Local manufacturers and service providers are therefore likely to find overseas markets when the currency is strong. Finally, increases in exports and reduction in imports will have a major effective on innovation and creativity. Local firms and individuals will be encouraged to enhance the quality of existing