INTERNATIONAL TRADE

What does an unfavourable Balance of Trade mean?

• A country has imported more goods than it has exported

• A country has imported more services than it has exported.

• A country has exported without importing.

• A country’s total imports exceed its total exports.

What are ASEAN and the EU examples of?

• airport authorities

• customs authorities

• political parties

• trading blocs

SS Ltd wishes to export its sportswear. It must consider the following factors when researching potential markets.

climatic conditions cultural requirements language differences

Which other factor is most likely to influence its choice of potential markets?

• import regulations

• number of banks

• storage areas

• time differences

A free port is an area where

• goods can be prepared for sale without payment of duty.

• no port charges have to be paid.

• ships have unrestricted access and departure times.

• traders can exchange goods free of inspection or regulation.

A country wants to increase exports in order to

• correct a surplus on balance of payments.

• dispose of surplus products.

• obtain scarce raw materials.

• raise tariffs.

The table shows trade statistics taken from a country’s Balance of Payments for 2018.

What is the Balance of Trade figure?

• –$100m

• –$50m

• $50m

• $2050m

What is the function of a customs authority?

• collecting statistics on imports and exports

• fixing the rates of customs duties to be charged

• maintaining ports and airports

• promoting new businesses

What is not an advantage of free trade?

• An increase in exports leads to new job opportunities.

• Consumers have a wider choice of goods at cheaper prices.

• It increases the range of products available.

• The government raises additional income from customs duties.

Quotas are sometimes used to control goods entering a country.

Who sets these quotas?

• customs and excise authorities

• government

• importers

• port authorities

AA Ltd wishes to expand its business by exporting washing machines. The diagram shows some difficulties it may face.

Identify X.

• bulk deliveries

• climate change

• disposal of surplus goods

• language differences