Economic Growth and International Trade Quiz

What are the 4 indicators of economic growth?

• Gross Domestic Product or GDP

• GDP per capita

• Health

• Literacy rates

• Human Development Index or HDI

Name 2 industries in which the Chinese economy is specialised in. Any 2 from:

• Technology

• Services

• Manufacturing (inc. textiles)

• Infrastructure

• Agriculture

Name 2 weaknesses of the Indian economy. Any 2 from:

• Poor infrastructure

• Narrow education system

• Balance of Payment Deficit

• Potential for overheating

Name 2 problems with doing business in Africa. Any 2 from:

• Corruption

• Poor Infrastructure

• Investor concern over stability

Define what is meant by an Import.

• A command to include a module or library in a program

• A process of exporting data from a system

• A method to delete files from a directory

• A technique to compress files

Define what is meant by an export.

• A good or service sold to a foreign country.

• A good or service bought from a foreign country.

• A domestic transaction of goods and services.

• A service provided within the same country.

Foreign direct investment (FDI) is defined as:

• The purchase of physical assets or a significant amount of ownership of a company in another country to gain a measure of management control.

• The purchase of stocks and bonds in another country.

• The transfer of technology and managerial know-how to another country.

• The establishment of a new business in another country.

Name 2 benefits to a business of FDI into a country that has a specialisation in the industry that they operate within.

• Access to specialist labour

• Access to specialist infrastructure

• Increased efficiency

• Decreased average cost (through efficiency)

• Increased competitive advantage

Name 3 ways that FDI enables the growth of a business.

• Access to natural resources

• Reduced transport costs

• Reduction in operating costs

• Reduction in export costs

• No trade barriers

Define the term trade liberalisation.

• The removal or reduction of restrictions or barriers on the free exchange of goods between nations.

• The imposition of tariffs and quotas on imported goods.

• The nationalization of private industries.

• The increase of government subsidies to local businesses.