Lecture 11- The global context

Supply chain of business is made up of all & contributors involved in creating , from to finished

Comparative advantage occurs when country has opportunity cost in of product than other

Protectionism occurs when introduces measures to
support businesses, & makes it for overseas businesses to

Customs union occurs when there is movement of products between countries, & all have same protectionist measures against

One barrier to international trade is trading abroad can be & therefore, can be

Another barrier to international trade is differences in compared to UK, such as differences in that affect business & state of economy

Third barrier to international trade is differences in which can make decisions such as how to your products more challenging

First time business is going to start getting involved in international trade is by . refers to selling products abroad

Other ways of getting involved in international trade for first time include your idea to an operator or up with local business in or . This may help overcome barriers around different & barriers. However, choosing these options may involve sharing

According to law of comparative advantage, in country should specialise in production of products where they have opportunity cost & in from abroad products where they have relatively opportunity cost. This can lead to goods & services being produced around world & overall, everyone being

Impact on business of comparative advantage is by using overseas they can in goods & services where they have relative for price than they could produce them for themselves. This saves business & allows business to use their resources

One benefit of international trade is trading can be situation for everyone. can sell their products for , & & abroad can buy them in for than they would pay if they were produced

Two benefits of free trade are it enables & to benefit from products from abroad & also, it provides & with greater of products than would be produced if country did not allow

Changes in exchange rate change of your currency abroad & of your products in foreign currency. Changes in exchange rate can happen & are out of business's . They can affect & & therefore, can have significant impact on &

One method of protectionism is . These add to products. This increases their & makes them less

Another method of protectionism is . These total number of products. This forces up & allows domestic producers to produce now

Third method of protectionism is . These are for things such as , health & safety , & rules about product & . This makes it more difficult for businesses to access market

Reason for protectionism is to protect certain industries from . Manager of business within protected industry will be with this support from their because it gives them more over market

Downside of protectionism is if you are business in other or you may not welcome protectionist measures as protectionism tends to prices & choice. Also, it may also lead to by other countries, making it difficult for you to in future

One economic argument for protectionism is to protect . Government may want to protect industries that are still , in order to help them become more & from economies of scale

Another economic argument for protectionism is to protect . Government may decided to protect selected that are regarded as to country

Third economic argument for protectionism is for . Government may impose on foreign governments. This involves placing complete (an ) on trade to try & reduce country’s income from in order to force political change

Fourth economic argument for protectionism is for '' . There may be reasons relating to or . Government may impose restrictions based on or of product

Trade agreements refer to anything that is used to try & overcome measures. Countries may join together in different of trade agreement. These usually allow for (i.e. no ) between member countries on some or all products. In some cases, this will extend to freedom to move between countries & for to work easily in different countries. Agreement might also include common approaches to trade with non-member countries

EU is an & union of countries. This is union where goods, services, money, & people can travel relatively throughout most of continent. All EU citizens have & to choose in which EU country they want to study, work, or retire. Every member country must treat EU citizens in exactly way as its own for employment, social security, & tax purposes. Members of EU have same protectionist measures against non-members