Imports and Exports Basics

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Questions and Answers

What is the primary difference between imports and exports?

Imports are bought by people and businesses in one country, while exports are sold by domestic businesses to other countries (correct)

Imports are valued in foreign currency, while exports are valued in domestic currency

Imports result in money leaving the country, while exports bring money into the country

Imports generate revenue for foreign businesses, while exports generate revenue for domestic businesses

In 2022, what was the UK's biggest import?

Smartphone manufacturing

Gold

Cocoa

Cars (correct)

How do imports affect a country's economy?

Imports increase domestic revenue

Imports bring money into the country

Imports result in money leaving the country (correct)

Imports lead to specialisation

What does specialisation refer to in business?

Focusing on producing a particular good or service Signup and view all the answers

Which country specialises in cocoa and gold?

Ghana Signup and view all the answers

How can specialisation impact the quantity and quality of goods and services?

It can increase both the quantity and quality Signup and view all the answers

What is the primary reason businesses choose to specialize in the production of specific goods or services?

To increase the quantity and quality of their output Signup and view all the answers

How do imports affect a country's economy?

Imports result in money leaving the country, which benefits foreign businesses Signup and view all the answers

Which of the following best describes the relationship between imports and exports?

Imports and exports are complementary, as they both contribute to a country's international trade Signup and view all the answers

What was China's biggest export in 2022 according to the passage?

Smartphones Signup and view all the answers

How does specialization affect the quantity and quality of goods and services produced?

Specialization increases both the quantity and quality of goods and services Signup and view all the answers

Which country is mentioned in the passage as specializing in the production of cocoa and gold?

Ghana Signup and view all the answers

What was the United Kingdom's biggest import in 2022 according to the passage?

Cars Signup and view all the answers

How do exports impact a country's economy?

Exports generate extra revenue for businesses selling their goods abroad Signup and view all the answers

What is the primary difference between imports and exports according to the passage?

Imports result in money leaving the country, while exports generate additional revenue Signup and view all the answers

How does specialization enable businesses to focus on their core competencies?

Specialization enables businesses to concentrate on a narrower range of goods or services, allowing them to develop deeper expertise and capabilities in their core areas Signup and view all the answers

Study Notes

International Trade

Businesses that trade internationally engage in importing and exporting goods and services
Imports: goods and services bought by people and businesses in one country from another country
UK's biggest import in 2022: cars, valued at approximately £3.25 billion
Exports: goods and services sold by domestic businesses to people or businesses in other countries
China's biggest export in 2022: smartphone manufacturing, valued at approximately $21.4 billion

Impact of International Trade

Exports generate extra revenue for businesses selling their goods abroad
Imports result in money leaving the country, generating extra revenue for foreign businesses

Specialisation and Competitive Advantage

Specialisation occurs when a country or business focuses on producing a particular good or service
Examples of specialisation:
- Apple: production of technological products and services
- Ghana: cocoa and gold production
Specialisation can increase the quantity and quality of goods and services

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Description

Learn about the fundamentals of international trade, including imports and exports. Explore the significance of imports and exports in the global economy, with examples like the UK's top import in 2022 being cars, and China's top export being smartphone manufacturing.