Causes Of International Trade (section 18)

Question 1

What factors impact international trade

Answer 1

Push and pull factors

Question 2

What are push factors

Answer 2

Negative factors in the domestic market, that motivate a firm to look into opportunities in other countries, and these often include threats

Question 3

Examples of push factors

Answer 3

Saturated market- these markets are crowed and have little opportunities for sales growth. So a firm might look into moving into an unsaturated market overseas, to allow for lots of opportunities.

Competition- High levels of competition are going to reduce sales and profitability and this could force the girl out of the market, meaning they have to move elsewhere where

Question 5

What are pull factors

Answer 5

Positive factors in overseas markets, such as attractive traits that will draw in a business to trade there

Question 6

What are examples of pull factors

Answer 6

Global economies of scale (if the business expands and goes abroad). To lower the unit costs

Lower costs (production and supplies)

More education/higher trained staff

Higher availability of resources.