BS3- International Trade And Free Trade Flashcards
Explain what is mean by international trade
the exchange of capital, goods, and services across international borders or territories because there is a need or want of goods or services.
Outline why international trade is very important for variety
It allows for products that can’t be made or grown in some countries to be traded into and out different countries.
Identify two other reasons that a business may choose to trade internationally
It allows them to have a bigger market
May allow to put prices up in different counties
Outline one source of financial support for business who trade internationally
They can benefit from free trade which is trading without tariffs or quotas being added on
Outline how ASOS may have to take into account logistics when trading internationally
They offer things like next day delivery which may be difficult if the package is having to be shipped a verily long distance
State three other factors that a business should consider when trading internationally
Tariffs s for quotas from other countries
Greater competition
Complying to all the standards of that country
Explain the relationship between increased globalisation and increased international trade
globalization refers to the interdependence between countries arising from the integration of different aspects of the economy, such as trade. International trade can stimulate economic growth of countries that are now so interconnected.
What is meant by free trade
When there are no barriers or limitations to trade at all
Identify two examples of free trade
Eu- free trade agreement
European free trade association
Outline one reason why free trade can cause environment issues
It course environment issues due to when moving and transporting good it is burning fossils fuels and free trade encourage this
State two other disadvantages of free trade
It can force locals out of the market due to foreign company’s being able to do things for cheaper
Less tax revenue for countries
