International Trade

Sepcialisation

Specialisation is the concentration of resources on particular products or tasks.

Advantages

  • Increase in quantity produced
  • Increase in quality of products
  • Costs are cut due to economies of scale
    • Price can be lowered to compete
    • Price can be increased and customers will still exist
  • Increase in exports
    • Better balance of payments and balance of trade
    • Can import other goods
    • Increases global efficiency by globalisation

Globalisation

Foreign Exchange Rate