Level 2
Level 1

Why do countries trade?


15 words 0 ignored

Ready to learn       Ready to review

Ignore words

Check the boxes below to ignore/unignore words, then click save at the bottom. Ignored words will never appear in any learning session.

All None

Ignore?
Globalisation
An expansion of world trade in goods and services leading to greater international interdependence
Multinational Company
A company that has operations all over the world
Race to the bottom
Governments reduce taxation, environmental legislation and labour laws to attract FDI
International trade
The exchange of goods and services across international boundaries
The World Trade Organisation (WTO)
An international body that has been set up to encourage free trade
Free trade
An absence of tariffs, quotas and regulations designed to reduce or prevent trade amongst nations
Exports
Goods and services which UK firms provide and sell to the rest of the world
Imports
Goods and serivces the UK buys from the rest of the world
Protectionism
Where an action is taken that reduces international trade
Tariff
A tax placed on imports to increase the price and reduce the quantity demanded
Quota
A physical limit on the number of goods imported into a country
Embargo
A ban on the import of a good or service
Absolute advantage
When a country is able to provide a good or service using fewer resources and at a lower cost than another country
Infant industry
An industry that is protected in order for it to develop
Dumping
When a country undercuts other country's producers by selling below the cost of production