IB COURSE NOTES - CHAPTER 1

Another issue is export. What proportion of the nation's output that is potentially exportable is in fact exported? One way to address this more narrow question is to begin with the domestic output of the goods-producing sectors of the economy, as measured by the value of final exports of goods, plus change in goods inventories,

As one determinant of GDP is exports, it is relevant to discuss the matter with relevance to the UK and Germany. As mention in the literature review, during 1955-1960 exports in Germany

A country needs to export more than import in order to maintain a good working economy. Wealth and power equal more export than import in a country’s trading system

Cuts in protection have increased imports but the increased efficiency has led to a comparable rise in exports. The value of exports plus imports of goods and services has risen from 32% of GDP in 1975 to 48% of GDP in 2000 (ABS), reflecting

1) The scope of any economy is that of creating a balance between its exports and imports, or exporting more than importing, in order to generate national gains and revenues. Within the United States however, it has often happened that the totality of the imports exceeded the totality of the exports. The result of

22. Which is growing at a faster rate, foreign direct investment by MNCs or international trade?

Developed Countries have a high per capita income and GDP as compared to Developing Countries.

You are employed by the local Business Development Agency and have been asked to independently research international business in relation to an international case study business of your choice. From your research you are required to put together a research report document which can be used to assist businesses who are considering trading internationally. Your work should be a result of your own independent research and contain references throughout and a bibliography. Your research should follow the guidelines set and give your own supported judgement where indicated.

FDI allows the home country to invest into the host country to produce, advertise, and distribute products, in order to upsurge their market share and provides a long-term investment and enhancement. (Moosa, 2002)

In the years between 1990 and 2001 when global gross domestic product rose 27%, what was the growth in global exports?

1 To identify the slowing of export growth and the share of GDP to export is decreasing in China.

Location is the most important factors for business success for international business. The world offers different locales, opportunities and risks as the companies try to create value from increasing sales or acquiring competitively useful assets.

Initially, the export level to the world is low due to the world prices being less than domestic prices. Consequently, production focuses on satisfying local demand as it offers better pricing than exporting. As there is little incentive to export, there is also little incentive to

C. Both US and India are net exporters, and their exports represent a large share of GDP

India remains the third most attractive destination for FDI, after China and the United States of America, for 2013-2015, according to a survey of global companies conducted by UNCTAD. Foreign Direct Investment in India has increased from $ 1,04,411 in year 2000-2001 to $ 6,96,011 in 2011- 2012. The distribution of FDI inflow is concentrated to some sectors. Services , Construction, Communication, Drugs and Pharmaceuticals, Chemicals, Automobile Industry etc. are among the leading sectors which bag major share of FDI inflows. (Figure 2.1)