4.1.2 international trade and business growth

Question 1

define import and the purpose of importing?

Answer 1

Importing is when you bring goods and services from another country.
The main purpose is to fill demand of goods and services that are lacking
excessive imports can have a negative impact on the domestic economy

Question 2

define exports and the main purpose of it?

Answer 2

selling goods and services from the domestic country

main income create more foreign income from selling goods.

Question 3

what is comparative advantage?

Answer 3

the ability of a person or group to make a product and specialise in it so as to make their product better and more efficiently the competitors.

Question 4

what is specialisation?

Answer 4

When a business or country concentrates in a product or service but produce them to a higher quality

Question 5

what is FDI?

Answer 5

foreign direct investment
Involves direct investment into a country, leading to a business becoming multinational corporation
- much riskier then exports or imports but allows you to have comparative and competitive advantage