To benefit consumers as subsidised goods are cheaper./When the statesubsidises products, consumers are able to buy the cheaper products.  Products become cheaper in other countries because the governmentsubsidises exporters.  The costs of production are reduced, and it becomes easier for many newbusinesses to be formed because they are assisted with starting up.  To increase employment opportunities and make jobs more secure./As newand many businesses are formed, employment opportunities increase andultimately the country’s unemployment rate reduces.

Export-led growth tends toQuestion 12Answera.lead to unemployment among domestic workers.b.discourage competition in the global economy.c.exploit domestic comparative advantages.d.help firms benefit from small-scale production.

Complete the statement below.The benefits of specialisation and trade are based on    assumptions. If there are increased production costs, trade barriers or    costs then output may decrease.

A major benefit of having markets in overseas countries for a business is:YOUR ANSWERYour Answerthe increase in the costs of productionthe opportunity for its customers to buy the product when travelling overseas.an additional revenue stream.it keeps costs down.

_______ holds that there are advantages to trade because different countries can produce different goods more efficiently than others.

The number of multinational companies opening production facilities in Country M has risen.Identify a benefit of this for Country M.A decrease in competitiveness of domestic companiesA decrease in the unemployment levelA reduction in taxes paidRepatriation of profits