Question

a) Define international trade.
b) Explain two differences between international trade and internal trade
c ) Analyse what determines which products countries specialise in
d) Discuss whether a country should specialise in tourism

Answer 1

Answer:

Hope this helps you.

Explanation:

Ans a:International trade is the exchange of goods and services between countries. Trading globally gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries, or more expensive domestically.

Ans b:It is also known as domestic trade or home trade.

I have uploaded a picture for answer b.

Ans c:When countries decide what products to specialize in, the essential question becomes who could produce the product at a lower opportunity cost. Opportunity cost refers to what must be given up in order to obtain some item.

Ans d:Tourism boosts the revenue of the economy, creates thousands of jobs, develops the infrastructures of a country, and plants a sense of cultural exchange between foreigners and citizens. The number of jobs created by tourism in many different areas is significant.Tourism helps to “enhance employment opportunities and earnings, which can be of major economic significance to the local population” [18]. In terms of employment, the local community could expand their earnings and socio-economic condition, which could lead to an improved standard of living