International Trade

Question 1

Trade

Answer 1

Buying and selling goods and services

Question 2

World Trade Organisation

Answer 2

• WTO overseas all international trade
• Deals with the global rules of trade between nations
• Ensures that trade flows as smoothly, predictably and freely as possible
• 164 members, 20 observer status

Question 3

Monopoly

Answer 3

Control of the supply of or trade in a commodity or service

Question 4

Protectionism

Answer 4

• the practice of shielding your countries domestic industries from foreign competition by tax imports
  + Protects sunrise/infant industries
  + Protects sunset/decling industries
  + Protects non-renewable resources
  + Deter unfair competition
  + Save jobs
  + Help the environment
  + Limits over-specialisation (stops countries from being involved in only 1 industry)

Question 5

Sheets

Question 6

Benefits of trade for developing countries

Answer 6

• Encourages innovation- competition gives countries pressure to update + improve products, to ensure they’re not outcompeted
• Enhances competitiveness- Helps to lower world prices, makes better and cheaper prices
• Export diversification- more opportunities to sell to to everyone. Economy is balanced + dependent on more than 1 product
• Can boost development and reduce poverty- if you’re selling to more people you can produce more profit + costumers+ more employment
• Expands business opportunities for local companies- trade creates opportunity to sell to a larger market + work with other companies, more business deals, approach from more companies
• Provides greater employment for people in your country