Chapter 22 Economic issues affecting international trade Flashcards
(8 cards)
Chapter 22
What are Developed countries?
Edexcel 2BS01 Business Studies GCSE Unit 3.5
Countries with a relatively high income per person (per person includes everyone in the country from babies to people aged 100+)
Businesses in developed countries often sell high priced, high quality products to developing countries.
Chapter 22
What are Developing countries?
Edexcel 2BS01 Business Studies GCSE Unit 3.5
Countries with a lower income per person than developed countries (per person includes everyone in the country from babies to people aged 100+).
Businesses often take advantage of low wages in developing nations by relocating or outsourcing work.
Many products made in developing nations lack high levels of quality or technological advances and do not sell well in developed countries.
Businesses in developing countries often sell lower quality, less technologically advanced but cheaper products to developed countries.
Chapter 22
What are Exports?
Edexcel 2BS01 Business Studies GCSE Unit 3.5
An export is the sale of a good or service to a foreign buyer (a customer in another country) that leads to a flow of money into the UK. The foreign buyer will have to change their currency into pounds to complete the purchase
Chapter 22
What are Export subsidies?
Edexcel 2BS01 Business Studies GCSE Unit 3.5
Measures that reduce the price of goods sold abroad. Export subsidies are amounts of money a government might give firms that export products which helps to reduce the cost of production and potentially lower the selling price to the overseas consumer.
Chapter 22
What are Imports?
Edexcel 2BS01 Business Studies GCSE Unit 3.5
An import is the purchase of a good or service from a foreign business (a customer in another country) that leads to a flow of money out of the UK. The UK buyer will have to change pounds into the seller’s currency to make the transaction. High income countries spend more on imports than low income countries
Import protection is designed to reduce imports being bought from abroad. It uses measures such as tariffs and quotas.
Chapter 22
What are Protectionist policies?
Edexcel 2BS01 Business Studies GCSE Unit 3.5
Measures designed to reduce foreign products coming into a country but give an advantage to domestic firms to sell products at home or export products
Chapter 22
What are Quotas?
Edexcel 2BS01 Business Studies GCSE Unit 3.5
Limits on the physical number of goods that can be imported over a period. This is decided by the European Union, and there are no tariffs or quotas between EU members
Chapter 22
What are Tariffs or customs duties?
Edexcel 2BS01 Business Studies GCSE Unit 3.5
Taxes put on goods imported into a country which make them more expensive for buyers. These are methods of import protection. This is decided by the European Union, and there are no tariffs or quotas between EU members
