4.1 Importance of international trade

• What is the importance of international trade?

  Exchange of goods and services between countries
• What are imports?

  Goods brought into a country from another
• What are exports?

  Goods sold to another country in trade
• What are the reasons to import goods?

  • Acquire more factors of production
  • Obtain goods a country does not have
  • Get products a country cannot produce
  • Acquire parts for production of goods
• What are the reasons to export goods?

  • Economic growth
  • Profitability
  • Economies of scale
  • Increase in consumer base
  • May increase product life cycle
• What are the benefits of international trade for consumers?

  Lower prices and more choices
• How does international trade create employment opportunities?

  By increasing demand for goods and services
• What is the impact of international trade on job creation?

  It can create employment opportunities
• What is the effect of competition on international trade?

  It can lead to better prices and quality
• What are the main exports of the USA?

  Cars, medicinal products, crude oil
• What are the main imports of the UK?

  Fruit and vegetables
• What are the benefits of free trade agreements?

  • Specialization occurs, leading to better resource allocation
  • Increased exports and imports
  • Economic growth
  • More employment due to higher output
  • Lower prices and more choices for consumers
• What is the impact of Brexit on trade?

  It affects trade agreements and regulations
• What are the potential benefits of Brexit mentioned?

  Control over immigration and trade policies
• What are the negative economic effects of Brexit on the UK?

  Higher prices and inflation due to trade barriers
• How has Brexit affected labor shortages in the UK?

  Restrictions on immigration have caused shortages
• What is the impact of supply chain disruptions on the cost of living?

  It increases the cost of living
• What is the relationship between trade barriers and inflation?

  Trade barriers can lead to higher inflation
• How has Brexit affected foreign investment in the UK?

  It has led to uncertainty and reduced investment
• What is the overall economic impact of Brexit on the UK so far?

  Mostly negative effects on trade and growth