4.1.2 International trade and businesses growth

• Imports are goods and services bought by people and businesses in one country from another country
• Exports are goods and services sold by a domestic businesses to people or businesses in other countries.
• Specialisation occurs when a country/business decides to focus on producing a particular good/service
• foreign direct investment is investment by foreign firms which result in more than 10% share of ownership of domestic firms.
• Countries can benefit from FDI as it can led to:

  1. Increased economic growth
  2. Increase job opportunities
  3. Access to knowledge and expertise
• Inward FDI occurs when foreign business invests in the local economy
• Outward FDI occurs when a domestic business expands its operation to a foreign country