International Trade Flashcards
1
Q
Define International Trade?
A
The exchange of goods and services between countries
2
Q
Determinants of International Trade?
A
- Specialisation
- Due to factor endowments
- Cost of production in other countries
- other Countries can produce more cheaply
- Tastes and Preferences
3
Q
Examples of major UK Imports?
A
- Food
- Oil
- Clothing
- Vehicles
- Movies
4
Q
Examples of Major UK exports?
A
- Financial services
- Education
- Electronic goods
- Jet engines
5
Q
Gains from trade from consumer viewpoint?
A
- Wider Choice of goods and services
- Of sustainable goods
- of otherwise unavailable goods
- Lower average cost
6
Q
In a gains from trade diagram, what assumptions are made?
A
-Imports are cheaper than domestic products
7
Q
Define Protectionism?
A
Protecting the market share and employment in domestic industries by restricting/reducing the quantity of imports
8
Q
What are some methods of protectionism?
A
- Tariff:
- a tax on imports => raises the price
- Quota:
- a numerical limit on how much can be imported
- Subsidise domestic industries
- Set high safety standards
