4.1.2

Question 1

Definition of Imports

Answer 1

Goods that are brought into the domestic country from another

Question 2

Definition of Exports

Answer 2

Goods that are sold by domestic businesses to another

Question 3

Definition of Specialisation

Answer 3

When a company decides to focus on producing a particular good

Question 4

4 Benefits of Specialisation

Answer 4

-Lower unit costs
-Lower prices for customers
-Increase profit margins
-Increase quality

Question 5

What can Specialisation provide

Answer 5

Competitive Advantage

Question 6

What is FDI

Answer 6

The investment by foreign firms resulting in more than 10% ownership of domestic firm

Question 7

How do businesses grow through FDI

Answer 7

Mergers, Takeovers, Joint Ventures or Partnerships

Question 8

3 ways countries benefit from FDI

Answer 8

-Increased economic growth
-Increased Job Opportunities
-Access to knowledge

Question 9

Definition of inward FDI

Answer 9

When a foreign business invests in the local economy

Question 10

Definition of outward FDI

Answer 10

When a domestic business expands to a foreign country