specialisation and trade 4.1

Question 1

define specialisation

Answer 1

The concentration of a worker, firm region or country to produce a narrow range of goods and services

Question 2

specialisation requires trade to be successful

Answer 2

if no one else in the UK was bringing in other manufactured goods, then the UK wouldn’t be specialised in services

Question 3

monetary payments between

Answer 3

agents

Question 4

specialisation reduces problem of scarcity

Answer 4

UK can’t produce bananas, so imported

Question 5

adv of specialisation

Answer 5

• Larger range of goods and services available
• Greater output = greater quality of goods
• Trade + growth = living standards improve as people are more wealthy = increased happiness = long term increased morale labour force = more productive?
• greater competition

Question 6

disaadv of specialisation

Answer 6

• Finite resources – specialise so much in something that it runs out
• Over reliance on good weather – tourists/ agriculture
• Changing tastes/ fashions
• National interdependence
• Deindustrialization – TNC’s moved from Sunderland to China

Question 7

McDonald’s operates

Answer 7

14146 restaurants in USA, but 37855 globally

Question 8

In the 1973 oil crisis

Answer 8

members of the Organization of Arab Petroleum Exporting Countries launched an oil embargo targeted at nations which backed Israel during the Yom Kippur war. Oil prices in the UK, US, and elsewhere quadrupled. Inflation

Question 9

If a country loses an industry due to a loss of comparative advantage

Answer 9

Structural employment likely to follow.

Eg, when coal mining industry declined.