4.1.2 International Trade and Business Growth Flashcards
What is a comparative advantage?
The theory that a country should specialised in products and services that it can produce more efficiently than other countries.
What is a Competitive advantage?
The idea that a business should specialise in any area (products, services, management, research etc.) where is can perform better than its competitors.
What is division of labour?
Different workers specialising in different productive activities.
What is an export?
Goods or services that a firm produces in its home market, but sells in a foreign market.
What is Foreign Direct Investment (FDI)?
Investing by setting up operations or buying assets in businesses in another country.
What is an import?
Goods or services that are brought into one country from another.
What is international trade?
Exporting (selling abroad) and importing (buying from abroad).
What is Specialisation?
A production strategy where a business focuses on a limited scope of products or services. This results in greater efficiency, allowing for goods and services to be produced at a lower cost per unit.
What is a tariff?
Taxes that are imposed on imports.
