4.1.2 international trade and business growth

Question 1

define imports

Answer 1

good that are made in other countries and brought into the uk

Question 2

define exports

Answer 2

goods manufactured in the UK and sold abroad

Question 3

specialisation and competitive advantage

Answer 3

a country may decide to specialise in a particular industry or sector

Question 4

benefits of specialisation and competitive advantage

Answer 4

increased productivity and output = reduced average costs and economies of scale.
more resources are devoted to the industry rather than being spread out = the scale of production can be increased to gain the eos

Question 5

downside of specialisation and competitive advantage

Answer 5

country may become over reliant on one industry and this does not spread risk.
other countries may become cheaper too in the same industry and it may be harder to complete.
if it grows to big it may suffer from deos through lack of communication and co-ordination

Question 6

fdi - foreign direct investment

Answer 6

when a company either sets up a new business abroad or when a company takes over or merges with another business overseas

Question 7

inward fdi

Answer 7

investment into a country such as the UK from companies abroad

Question 8

outward fdi

Answer 8

investment from a country such as the uk building a factory in Brazil.

Question 9

Greenfield fdi

Answer 9

build a completely new factory or business

Question 10

brownfield fdi

Answer 10

buy an existing business and grow it

Question 11

fdi benefits to the host country

Answer 11

brings Hugh pay, new jobs
bring new technology and creates new markets.
increases exports