international trade and business growth

Question 1

what is an import

Answer 1

good that enters the country

Question 2

what is an export

Answer 2

good that leaves the country

Question 3

what is specalistion

Answer 3

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

Question 4

what impact does specalisation have on a business

Answer 4

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

Question 5

what are the advantages of specialisation

Answer 5

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

Question 6

What are the disadvantages of specalisation

Answer 6

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

Question 7

what is FDI

Answer 7

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