Gross Domestic Product per capita, literacy, health, Human Development Index
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What are imports?
Products being produced abroad and consumed domestically
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What are exports?
Goods and services produced in Britain but consumed by people and businesses overseas
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How does specialisation give a competitive advantage?
More efficient as the company is only producing one thing, so can reduce price as there is a lower unit cost
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What are the problems with exporting?
Transport costs, avoiding protectionist barriers, access to natural resources, higher operating costs than foreign direct investment
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What are the factors contributing to increased globalisation?
Trade liberalisation, political change, reduced transport costs, increased significance of global companies, increased investment flows, migration, growth of global labour force, structural change
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What is trade liberalisation?
When governments remove international trade barriers designed to keep imports out
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What opportunities are created by trade liberalisation?
Domestic firms that import can now buy for cheaper, provides increased market access to businesses that are willing to sell their products abroad
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Why do countries impose tariffs?
Protect declining industries, prevent a sharp rise in unemployment
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What are the pros of tariffs?
Help inefficient firms to survive (benefiting everyone in the company and suppliers), revenue raised from the tax can be used on public services
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What are the cons of tariffs?
Higher prices means consumers cant buy as much, keeps inefficient firms alive, pace of economic change within a country is slowed
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What is an import quota?
An annual limit on the quantity of a good that can be sold in an overseas market
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What are the cons of quotas?
Limit consumer choice, make products more expensive
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What are the pros of quotas?
Businesses face less competition, may prevent job losses
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What are the pros of government legislation?
Domestic firms have less competition
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What are the cons of legislation?
The country which has now got bans is likely to ban products from your country
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What are the pros of domestic subsidies?
Can lower prices, preserves jobs, reduces imports
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What are the cons of subsidies?
Higher taxes on consumers and businesses, encourages inefficiencies, might not be enough to save a company
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Other cards in this set
Card 2
Front
What are imports?
Back
Products being produced abroad and consumed domestically
Card 3
Front
What are exports?
Back
Card 4
Front
How does specialisation give a competitive advantage?
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