Theme 4 Tracked Retrieval 4.1.2 International Trade& growth (CP)

A country that focuses on becoming an expert in a particular skill (such as cheaper labour for call centres) is an example of.....

• comptetitive advantage

• comparative advantage

• specialsation

• exporting

A benefit of specialisation is to

• decreased EOS so decreased costs are achieved

• increased cost per unit

• decreased average costs so EOS is achieved

McDonalds is an example of......

• Specialisation

• FDI

• World domination

• Exporting

Coca Cola setting up a factory in a new country is an example of ________FDI

• Horizontal

• Vertical

Walker crisps buying a potato farm in South Africa to produce crisps locally is an example of_______FDI

• Horizontal

• Vertical

________is the theory that a country should specialise in products and services that it can produce more efficiently

• Competitive adv

• Comparative advantage

• Specialisation

A downside to specialisation is

• If pone particular business grows too big it may suffer DEOS(decreased economies of scales)

• A decrease in the GDP

• Other countries could make it cheaper

• A business may establish itself in a developing market

Importing is defined as

• Good and services that are bought into a country from another

• Good and services that are sent out into a country from another

• Goods manufactured locally and sent out of the country