University:
College
Course:
College Business
Academic year:

2023
Views:

29

Pages:

1
Author:

anon

International Trade International trade - allows countries to gain from specialisation. ● For example, Nigeria is able to focus on what they are best at which is producing their products which is rubber and cocoa. By trading these items on world markets, Nigeria would be able to buy things which it finds it less easy to produce such as machinery. Other reasons why countries trade: ● ● ● ● ● ● To acquire items To achieve supply/products they cannot produce To provide greater customer choice To earn foreign currency To introduce more competition through international trade; To foster good relations with other countries Importing and exporting: the benefits for business ● ● An import involves the purchase of products or services from overseas. An export is a sale of products or services to individuals or businesses overseas. ● Through importing, business are able to acquire the best supplies. These might include supplies of raw materials, components, parts and semi-finished and finished products. Exporting makes it possible for firms to grow across the world. International trade can also put businesses at risk. ● ● Key Points: ● ● ● ● ● Trade gives countries access to resources and goods not available at home. Trading enables countries to grow their economies. Countries specialise in and sell abroad those items that they can make best. A business benefits from importing raw materials, parts and finished products. A business gains revenue and profit from exporting. This also enhances the brand internationally.