23 International trade

Question 1

Define division of labour

Answer 1

Different workers specialising in different productive activities

Question 2

Define exports and imports

Answer 2

exports are goods/services that a firm produces in its home market but sells in a foreign market (selling abroad)

imports are goods/services that a firm bought in one country from another country (buying abroad)

Question 3

Define foreign direct investment

Answer 3

investing by settling up operations or buying assets in businesses in another country

Question 4

Define international trade

Answer 4

the process of exporting and importing

Question 5

Define international trade

Answer 5

the process of exporting and importing

Question 6

Define invisible trade

Answer 6

trade in services rather than physical products

Question 7

Define specialisation

Answer 7

a production strategy where a business or country focuses on a limited number of products or services

Question 8

Define tariffs

Answer 8

taxes that are imposed on imports

Question 9

Define visible trade

Answer 9

trade in physical goods