Theme 2- Net Trade (key terms)

Question 1

Exchange rates

Answer 1

The price of one currency in terms of another e.g. the value at which you can change £s for $s

Question 2

International competitiveness

Answer 2

A measure of how competitive your goods and services are compared to those from other countries

Question 3

Non-price factors

Answer 3

Factors aside from the price of a good or service which affect its competitiveness e.g. quality, branding, craftsmanship

Question 4

Protectionism

Answer 4

Measures countries use to protect their own firms/workers from competitiveness of goods and services made abroad. Most common forms: tariffs, quotas and regulations