Saturday, December 15, 2007

Unit 2: Efficiency and competition: Elecctrolux relocate production to Poland

This Guardian article explains why the Swedish firm Electrolux has decided to relocate production to Poland from the UK

http://www.guardian.co.uk/business/2007/dec/14/manufacturing.ireland

a) State which type of efficiency will be improved by this move
b) Explain why this will be the case and the role of competiton in leading to this improved efficiency
c) What drawbacks does this aticle show there may be to making more efficient use of scarce resources

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