importance of international trade (4.1) Flashcards
1
Q
what are exports
A
goods and services sold abroad
2
Q
what are imports
A
goods and services bought from abroad
3
Q
what is international trade
A
the exchange of goods and services between countries
4
Q
what are benefits of exports for consumers
A
- lower prices : producers need to compete against a wider range of firms so may lower prices to gain market share
- better quality goods : again to improve competition
- greater choice of goods and services
5
Q
what are benefits of exports for producers
A
- access to larger market to sell goods and services
- increased competition leading to higher efficiency
- specialisation and lower average cost
- larger market for buying inputs
6
Q
what is the european union
A
an economic and political group of countries that have free trade with each other
7
Q
what is a free trade agreement
A
free movement of goods and services between countries, without any restrictions
