4.1.2 International Trade

Question 1

What does international trade do?

Answer 1

Creates growth opps for nations + businesses

Question 2

Importing

Answer 2

Buying products for resale/brinign products into country from a foreign country (raw materials)

Question 3

Exporting

Answer 3

Selling products + services direct to foreign customers
In exchange for

Question 4

Easiest and safest way to trade internationally

Answer 4

Through local agent as will have expertise in local market

Question 5

Importing + exporting is the easiest way for a business to trade internationally but…

Answer 5

There r ricks associated with fluctuations in the exchange rate

Question 6

Competitive advantage

Answer 6

Can be gained from adding valuee where other business cannot e.g local resources to produce items that cannot be produced elsewhere foe the same price or quality

Question 7

Comparative advantage

Answer 7

Comes froms a country’s ability to specialise in the production of carts in goo + trade then with other nations
Concept- is the basis for many business to move into international markets to boy and sell products

Question 8

fdi

Answer 8

Foreign direct investment
Involves direct investment into a country leafing to a busines becoming a multinational coepratipk (mnc)
Might unclouded setting up a production facility
Far riskier than exporting or importing

Question 9

Reasons for Fdi

Answer 9

Investment in expanding industry + fast growing business
Access to infrastructure
Access to local recourses (copper + wine)
Access to fogn brands
Access to local knowledge + skills