Impact of Trading Blocs on Businesses (Edexcel A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
How many critical strategic decisions must businesses reconsider when operating in trading blocs?
How many critical strategic decisions must businesses reconsider when operating in trading blocs?
Four
What is the main advantage of locating production in one member state of a trading bloc?
What is the main advantage of locating production in one member state of a trading bloc?
Lower factor costs with tariff-free access
What is trade diversion?
What is trade diversion?
Shifting trade to less efficient bloc producers
What benefit do firms gain from increased trade volumes in a trading bloc?
What benefit do firms gain from increased trade volumes in a trading bloc?
Economies of scale
What does comparative advantage enable within trading blocs?
What does comparative advantage enable within trading blocs?
Specialisation in more efficient production
Which type of firm faces the greatest competitive pressure from trading blocs?
Which type of firm faces the greatest competitive pressure from trading blocs?
Small organisations
Why did IBM and Gap relocate production to Mexico after NAFTA?
Why did IBM and Gap relocate production to Mexico after NAFTA?
Lower labour costs and proximity to markets
How do trading blocs expand market access for businesses?
How do trading blocs expand market access for businesses?
By multiplying the potential customer base
In the EU agricultural example, why do consumers buy European instead of Indonesian produce?
In the EU agricultural example, why do consumers buy European instead of Indonesian produce?
EU subsidies make European produce cheaper
What benefit do Regional Trade Agreements (RTAs) provide member countries?
What benefit do Regional Trade Agreements (RTAs) provide member countries?
Collective bargaining power internationally