ABSTRACT
This chapter describes that analysis of the components of value suggested a simple distinction between price and non-price factors and the conclusion that many non-price factors are design-related. It develops the argument by looking at patterns of international trade between the United Kingdom (UK) and other countries. The chapter focuses on UK exports and imports of a wide range of manufactured goods that are traded internationally and compares these figures with those of major competitors. It also focuses on the consequences of this pattern of trade and its costs in terms of revenue and jobs. The chapter examines a number of specific industries such as machine tools, textiles, and agricultural machinery. It leads to the inevitable conclusion that the reason the UK imports dear and exports cheap is that in most cases, its products are technically inferior when compared to rival foreign offerings.
