Theme 4.1.2 international Trade

Imports

Products bought from overseas

Cause money to flow out of the economy

Increase the variety of goods avaliable

Often cheap

Exports

Products sold overseas

Result in money flow into economy

Helps with expansion

Simple and less risky way of accessing market outside of country/overseas

Competitive advantagwe

Something that allows business to ternate more salads or be more profitable than its rivals

Producing higher quality, better customer services , lower costs

Specialisation

When a form for uses on producing just one product or a narrow range mod products

This helps improve efficancy. Workers becomes highly skilled at producing particular parts of products. Speed of production will increase along with the quality of product

Reduces cost per unit which allows price to be dropped of profit margin to increase. If quality improves high price can be maintained which will increase overall profit of product

Disadvantages of specialisation

Risk of losing sales if there is a decrease in demand of product then firm wont have other sources of revenue to make up for the loss.

Increase of staff training- new staff might not be experts which will require extensive training for them to gain the particular skills