1. Economic
issues affecting
international
trade:

2. Specification detail
 The extremes of income distribution
internationally
 The effect of import protection and export
subsidy on businesses

3. Average weekly pay
Country Weekly Pay (£)
Brazil 58
Bulgaria 25
China 23
Germany 392
India 15
Latvia 46
Slovakia 76
UK 447
• Not only wages but the cost of petrol for transport and rent are
much cheaper.
• If you owned a store that produced sporting equipment, what
would this information tell you?

4. Good business or exploitation?
 IndianGarment Factory : Here
 Working in the Thai rice industry: Here
 Supplying our chocolate: Here

5. Local effects of global
business
 Quotas: only allowing a certain amount of
any product to be sold in a country
 Taxation: making business pay to import
products.
 Subsidy: Paying local people a sum of
money which allows them to compete
globally.

6. 1. Import protection
Quotas:
 A government can impose an
import quota on any commodity.
Customers will then have less
choice and local producers have
no incentive to reduce their price.
 Those wanting to import their
product will often bid/pay for their
right to sell their item in this
country. In turn, this will make the
item more expensive.

7. 2. Import protection
 Taxation
 Governments can make business pay a
certain amount of tax for each unit they
want to import.
 Local producers do not need to pay this
tax. This makes imported items more
expensive
 Are imported items cheaper?
Why/Why not?

8. Export subsidy
Subsidy : Here
 Businesses may receive a payment to export what
they produce. The money they earns means they
can sell their product for less and still make enough
to compete.
 The World Trade Commission has put pressure on
governments to cease this funding. Bad news for
local farmers, great news for international farmers.
 An Argument in economics exists: If it can be sold
at a price that the markets wants, it shouldn’t be
part of the market.

9. Pigs may fly
 Here