1
Q
Why do some countries trade?
A
- Climate: some countries cannot grow certain vegetables or fruit / raw materials
2
Q
What are push factors?
A
the reasons why people leave an area:
- lack of services
- lack of safety
- high crime
- crop failure
3
Q
What are pull factors?
A
the reason why people move to a particular area:
- higher employment
- more wealth
- better services
- good climate
4
Q
What are examples of push factors?
A
- saturated market (difficult to make sales)
- competition (hard to compete with prices)
5
Q
What are examples of pull factors?
A
- Risk-spreading
- Economies of scale
6
Q
What is offshoring?
A
The process of having some of a firms processes or services abroad e.g. call centres to take advantage of lower labour costs
7
Q
What is outsourcing?
A
The process of getting goods and services from an outside supplier. such as another supplier or firm.
8
Q
What is an economic downturn?
A
A decline in GDP
9
Q
How do small firms compete?
A
- USP’s + differentiation
- Flexibility
- Niche Markets
- Customer Service
- Personalised Relationships
10
Q
What are Unique Selling Points (USP’s)?
A
Distinctive features that no competing product can match perfectly precisely.
Edexcel Economics B
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