Topic 1 Flashcards
1
Q
What is international trade
A
the exchange of goods across national boundaries
2
Q
Who is involved in international trade
A
government bodies
commercial banks
Insurance companies
transport companies
3
Q
What are the advantages of international trade
A
cheaper goods economies of scale earn foreign currency more variety increased in jobs
4
Q
What are the risks of international trade
A
laws and practices import controls, exchange controls, licensing fluctuation of foreign currency distance and time country risk
5
Q
Where can you find trade information
A
foreign embassy, high commissioner, agent Foreign chambers of commerce overseas trade directory or publication commercial banks internet personal visits
6
Q
What is the terms of delivery also known as ?
A
Incoterms
7
Q
What is protectionism
A
policy for protecting domestic industry against foreign competition by placing restrictions on imports
8
Q
What are the reasons for protectionism?
A
Revenue Politics National Defence Jobs Development
