4.1.2 International trade and business growth

Question 1

define comparative advantage

Answer 1

the theory that a country should specialise in products and services that it can produce more efficiently than other countries

Question 2

define division labour

Answer 2

different workers specialising in different product activities

Question 3

define exports

Answer 3

goods or services that a firm produces in its home market, but sells in a foreign market

Question 4

define foreign direct investment

Answer 4

investing by setting up operations or buying assets in businesses or another country

Question 5

define imports

Answer 5

goods and services that are brought into one country from another

Question 6

define international trade

Answer 6

exporting goods abroad and selling goods abroad

Question 7

define specialisation

Answer 7

a production strategy where a business focuses on a limited scope of products or services

Question 8

define tariffs

Answer 8

taxes that are imposed on imports