4.1 - International Trade

Question 1

International Trade

Answer 1

Exchange of products between countries

Question 2

Intra regional trade

Answer 2

Trade from within regions

Question 3

UK patterns of trade

Answer 3

46% of UK exports = Europe
53% of UK imports = Europe
UK largest export market = US - 18%
UK largest import market = Germany - 12%

Question 4

Strengths of international trade

Answer 4

• Spec + div of labour = lower costs, lower prices
• Producers gain, achieve econ of scale
• Producers more efficient - match global comp
• Econ growth
• Higher AD (X rev incr)
• Able to globally compete - more employment

Question 5

Weaknesses of international trade

Answer 5

• If out competed by int comp = unemployment
• Trade barriers - less AD
• Infant industries need protection
• Global economy is independent - problem in one area = problems in other
• Exploiting developing economies