3. Int'n Trade & Market Access

Question 1

trade

Answer 1

the movement of goods and services from producers to consumers

Question 2

comparative advantage

Answer 2

countries can benefit from specialising in production of goods that they are more skilled/efficient at so consumers in each country get max. benefit

Question 3

protectionism

Answer 3

the theory or practice of shielding a country’s domestic industries from foreign competition by taxing imports

Question 4

TNC

Answer 4

a company that operates in at least 2 countries

Question 5

why are TNCs a ‘globally integrated enterprise’

Answer 5

it is prepared to locate different functions of the business anywhere and pursues a goal to integrate production and deliver value worldwide

Question 6

vertical integration

Answer 6

supply chain of a company owned entirely by that company from raw materials to finished product, gives the TNC control over its supplies and reduced EOS

Question 7

horizontal integration

Answer 7

where a company diversifies it operations by expansion, merger or takeover to give a broader capability at the same stage of production

Question 8

group of 77

Answer 8

a coalition of the UN of developing nations

Question 9

agglomeration

Answer 9

when companies in similar industries locate near to each other because the benefits gained by sharing ideas and resources

Question 10

multiplier effect

Answer 10

a situation where an initial injection of investment/capital into an economy in turn creates additional income by increasing employment, wages, tax etc