GCSE Economics Unit 12 - Chapter 3

1. Volkswagen Cars

1. Jaguar Cars

1. More Jobs

   Annotations:

   • Because Exports increase production and therefore more jobs available.
2. Higher Economic Growth

   Annotations:

   • Because exports earn money and higher productivity increases economic growth.
3. More Choice

   Annotations:

   • UK customers can choose from goods that are otherwise not available in the UK.
4. Cheaper Prices

   Annotations:

   • Many of the goods are imported from places such as India or China. These countries have a lower minimum wage therefore cheaper labour. This means the good is produced for cheaper and can be sold for cheaper.
5. Increased Competition

   Annotations:

   • All companies have to work harder to attract consumers. Therefore they try to lower their prices and develop more attractive and better goods.
6. Raw Materials

   Annotations:

   • The Uk Is quite poor in raw materials therefore the UK can get this via imports. Such as metals, gems and energy.

1. Increased Competition

   Annotations:

   • Though it can benefit consumers with cheaper prices. UK firms may find it difficult to compete because ewe have higher labour costs than some countries. People could be out of work in the UK.
2. Economic Dependancy

   Annotations:

   • For Example, the Uk imports a vast amount of food, a disruption to this might threaten our survival.
3. Power of MNCs

   Annotations:

   • Multinational Corporations (MNCs) are becoming very powerful. All governments are finding it harder to control MNCs.

1. Because of Transport

1. Will make them more attractive to European buyers.
2. Travel to the UK will be cheaper, meaning increased tourism.

   Annotations:

   • Which will help to increase UK exports, jobs, income and growth.

Annotations:

• This effects the consumers and the businesses.

1. Farmers happy because imported foods become more expensive so some turn to UK farmers.

   Annotations:

   • This is the same with most goods and services.