2.7- International Trade

Question 1

What is international trade?

Answer 1

International trade is the selling and buying of goods from foreign countries.

Question 2

Advantages of international trade

Answer 2

*Increased profit- can sell products in increased quantities.
*More employment- increased sales means higher level of production giving employment for people.
*Greater variety- Increases the variety of goods available to consumers.

Question 3

Disadvantages of international trade

Answer 3

*Competition- there are so many more producers trying to sell their goods.
*Production- may require increased investment in production and recruitment
*Documentation- the business has to be familiar with the documentation needed to sell abroad