OCR GCSE Economics - 4.1 - Importance of International Trade

This trade barrier limits the number of products that can be brought into a country

• Tariff

• Quota

• Embargo

• Subsidy

This is a tax on imports that is used to increase the price of foreign products and raise government revenue

• Tariff

• Quota

• Subsidy

• Embargo

Infant industries can be helped in the world market by giving those industries a

• Subsidy

• Quota

• Embargo

• Tariff

Tariffs and quotas can benefit nations imposing them by:

• Raising revenue

• Increasing the variety of goods

• Lowering prices

• Increasing consumption

A major cost of free trade from poor nations is that they will

• Get cheaper goods

• Get more goods

• Get environmental damage

• Get a greater variety of stuff

Watches made in Norway are worn by people in Liverpool

• Import

• Export

Tyres made in Newcastle are used on cars in the US

• Import

• Export

Import means

• Buying goods from another country

• Selling goods to another country

• Only making one kind of product

Export means

• Buying goods from another country

• Selling goods to another country

• Only making one kind of product

Companies can produce goods for the domestic market as well as the foreign market. Is this a benefit or cost of free trade?

• Benefit

• Cost