International trade and Business growth IAL Business unit 4

Example of visible trade

• Oil import

• Tourist

• foreign carriers charges paid

• payment for the services by foreigners

Example of visible trade

• Information technology services provided to foreign counties

• Textiles export

• paid foreigners services like new technology training

• Received money for trans national services

Example of invisible trade

• oil import

• foreign Tourist paid money

• Textiles export

• Vegetables export

Invisible trade example

• payments for carriers from foreign countries services for sailing goods from there

• Chemicals import

• fertilizer import

• oil import

Why do dome countries try to limit imports?

• balance of trade get improved

• negative balance of trade

• Traders are not available

• price of goods from foreign countries are lower

What one risk of being involved in exporting and importing?

• local demand and supply can not be met

• more revenue

• Growth of international consumption

• improve the living standard

Advantage of specialization by a country

• country improves its efficiency

• low productivity

• labour turnover

• lack of skill

advantage on specialisation by country

• less output

• global output and prosperity

• inferior output

• more retention of workers

How does the specialisation lead to great efficiency?

• It saves time for the production

• reduce the skill of labour

• labour productivity went down

• managerial skill will not be developed

_____________________ investing by setting up operations or buy assets in businesses in another country

• FDI (Foreign Direct Investment)

• FII (Foreign Institutional Investment)

• FOI (Foreign Overseas Investment)

• FUI(foreign Unit Investment)