4.1.2 International trade

Question 1

International trade

Answer 1

the flow of goods & services between countries

i.e importing & exporting

Question 2

Importing

Answer 2

products & service being brought from overseas/foreign countries

Question 3

2 reasons why a business would want to import

Answer 3

1) May not have access to those good in your country e.g raw materials, complex technology

2) It may be cheaper abroad. (depends on exchange rate)

Question 4

Imports cause money to flow out of where

Answer 4

Imports cause money to flow out of your economy

(money leaves your country)

Question 5

Exports

Answer 5

Products that are sold to overseas ( selling to foreign countries)

Question 6

When businesses sell exports money flows where

Answer 6

Money flow into your economy

(money comes into your country)

Question 7

Advantages of Exporting - 1

Answer 7

Businesses use exporting as a way to expand to another markert

• More customers