international trade and business growth Flashcards

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1
Q

what is an import

A

good that enters the country

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2
Q

what is an export

A

good that leaves the country

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3
Q

what is specalistion

A

process by which individual, firms or countries concentrate production on the goods and sevrices that produce most efficiently

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4
Q

what impact does specalisation have on a business

A

output can be produced
workers can gain extra skills in specific areas
can hire more expertise
lower the cost due to more efficiency

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5
Q

what are the advantages of specialisation

A

leads to increased output and efficiency
developed specialised skill and knowledge
economies of scale are gained
comparative advantage enhanced

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6
Q

What are the disadvantages of specalisation

A

over reliance on one area of the economy
fluctuating commodity prices can be an issue
can lead to structural unemployment

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7
Q

what is FDI

A

foreign direct investment - flow of investment from one country to another. occurs when business in one country invests money into another country

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