4.1 Intetnational Trade

Question 1

What is international trade

Answer 1

This is the exchange of goods and services across international borders

Question 2

Advantages of international trade

Answer 2

Greater world output 
Greater variety of goods and services 
Lower average costs
Increased supply to choose from
Outward shift in PPF curve 
More economies of scale

Question 3

Disadvantages of international trade

Answer 3

Less developed countries use non-renewable resources too quickly and running out

Countries become over-dependent on the export of one commodity

More structural unemployment