international trade and free trade Flashcards
1
Q
what is international trade?
A
the exhange of capital goods and services across borders.
2
Q
what are the benefits to countries of international trade?
A
variety - consumer choice economic efficiency growth - millions of new customers international co-operation - reduces conflict. specialisation
3
Q
what are the implications of international trade for UK businesses?
A
- several people need to be in charge of SWOT
- fluency in different languages
- complying with requirements
- logistics of transporting goods.
- customers abroad may want to pay with their own currency
4
Q
what is an exchange rate?
A
the value of one currency in relation to another.
5
Q
why can a change in exchange rate be problematic ?
A
it can cause problems within the businesses costs and over all operations.
6
Q
what are does it mean if the pound appreciates in value?
A
good for imports bad for exports - good for raw materials however such as oil,
7
Q
what does it mean if the £ depreciates in vlaue?
A
good for exports bad for imports,
