Unit 1.9

Question 1

Advantages of International trade to a business

Answer 1

Reduced Unit costs due to economies of scale, as products can be made cheaper from other countries, leading to more profits

a greater variety of products for consumers

Question 2

Disadvantages of International Trade to a Business

Answer 2

Increased levels of competition between businesses

Language Barriers

Dealing in foreign currency

Question 3

Impacts of international trade on product

Answer 3

Unit of measurement differs between countries, which may affect product performance

Product features may need to change to meet legal, traditional and cultural requirements of the country

Question 4

Impacts of International Trade on a Price

Answer 4

Sales price may increase to cover the costs of tariff taxes and duties and transport costs

Question 5

Impact of International Trade on Promotion

Answer 5

promotional strategies will need to available in different languages

Promotional activaties must be carefully moderated to respect cultural differences

Question 6

Impact of International Trade on Place

Answer 6

Suitable methods are require to transport product to consumer across very large distances