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trade opportunities for international business:

- increased FDI
- opportunity for exporting to developing countries
- better infrastructure, developing countries becoming more production locations


indicators of growth:

- real GDP
- GDP per capita
- comparing currencies


measures of health:

- life expectancy
- infant mortality
- access to clean water
- doctors per 100,000


HDI measures:

- life expectancy
- mean years of schooling
GNI per capita


what is foreign direct investment?
is it risky?

- involves direct investment into a country
- more risk than exporting/importing, allows a firm to access comparative/competitive advantage


reasons for FDI:

- investment in expanding industry and fast growing, profitable business
- access to infrastructure
- access to local knowledge/skills
- access to foreign brands
- access to local resources


what is globalisation?

- the increasing integration and cooperation between countries and the growth of international trade


key factors of globalisation:

- multicultural society
- flow of capital between countries
- economic inter-dependency between countries
- goods and services traded throughout the world
- interchange of technology


what is protectionism?

- involves protecting domestic business and home industries against foreign competition and limiting the number of imports on the country


benefits of free trade:

- provides growth opportunities
- allows businesses to access components, raw materials and finished goods far cheaper


what are examples of protectionism in practice?

- tariffs
- subsidies
- quotas
- technical barriers


what are tariffs?

- tax on imports that increase the price of imported goods


what are subsidies?

- government grants given to support exporting business to they can lower their prices to compete internationally


what is a quota?

- physical limits set on the number of units that can be imported into a country


what is a technical barrier?

- e.g. rules and regulations governing the standard of products entering the country


what is a trading bloc?

- partnerships and agreements between nations to allow free trade and the collaboration and integration of economic, political and cultural practices


what are examples of trading blocs?

- NAFTA (north american free trade agreement)
- EU
- ASEAN (association of southwest asian nations)


benefits of trading blocs?

- opportunity to expand into new markets
- benefit from comparative advantage
- easier to source labour if free movement is permitted
- aligns international legislation making markets more efficient


drawbacks of trading blocs?

- countries outside bloc may have better comparative advantage
- infant industries are vulnerable to large international competitors
- tensions with regions outside of bloc