ABSTRACT
The issue of British competitiveness today is deeply rooted historically. By the middle of the nineteenth century, Britain’s major business sectors were the most internationally competitive the world has ever known: ‘over 40% of the entire world output of traded manufactured goods [were] produced within the country’ (Mathias. 1969, p. 250). Even this figure grossly understates Britain’s domination of higher value-added business sectors at that time. 85% of visible exports were in the form of finished goods, whereas 92% (by volume) of imports represented raw materials. Britain was producing approximately two thirds of the world’s coal, half its iron, five sevenths of its steel, two thirds of its hardware and about half of commercial cotton cloth (Kennedy, 1981, p20).
