economic issues affecting international trade

Question 1

developing countries and opportunities for UK business

Answer 1

lower costs of production in developing countries
products cheaper when bought from abroad and then sold in the UK.
the import of cheap natural resources.
increased demand from foreign markets as countries develop.

developing countries may also be a threat to the UK businesses i.e if the UK buys cheap imports , then UK businesses may suffer.

Question 2

policies affecting international trade

Answer 2

tariffs and import tax makes them more expensive
quotas put a limit on the number of imports
an export subsidy will reduce the price of exports and encourage exporting firms
whether importing or exporting the UK businesses may suffer or benefit from these policies

Question 3

what is a quota

Answer 3

a limit on the number of imports