Trading - buying and selling Flashcards
What is trade?
it is the buying and selling of goods and services
What are products?
these are things that people grow or make - food or clothes
What are services?
things that people do for others - working in a bank, plumber
why does Trade happen?
because people need or want things that they don’t have.
What is overseas trade?
when a country has natural resources that other countries don’t have - like coal
therefore making money for their country to buy things that it doesn’t have from another country
What is importing?
When a country buys products from another country.
What is exporting?
When a country sells products to another country.
What is a trading bloc?
a group of countries that agree to have free trade between them with no taxes.
Why does a country sometimes choose not to produce everything in its own country?
It can be purchased at a lower cost from another country.
What affects a country having more raw materials to sell than another country?
the distribution of natural resources are uneven through countries.
What does South Africa have a lot off to produce Steel?
metal ores
Name 2 other products South Africa exports?
diamonds, gold.
