TOPIC 1 PRODUCT OR MARKET CONDITIONS THAT MAY PROMPT A BUSINESS TO TRADE INTERNATIONALLY WHY HAVE IMPORTS GROWN?

Will be able to evaluate the impact of internationally trade on the business Evaluation ~ GCE Grade A* Will be able to propose reasons for trading internationally Synthesis ~ GCE Grade A Will be able to analyse the reasons for trading internationally Analysis ~ GCE Grade B Will be able to demonstrate understanding by using examples/cases Application ~ GCE Grade C Will be able to explain the considerations of trading internationally Comprehension ~ GCE Grade D Will be able to recall reasons a business will trade internationally Knowledge ~ GCE Grade E

Success Criteria

The Supply Chain  The supply chain is the sequence of processes which starts with acquiring the most basic inputs and ends with delivery of the product to the customer  Production can be in-house but it can also be contracted out  Outsourcing = purchasing inputs from independent suppliers either in the same country or overseas. It can be components, complete products or services (IT)

Production  Different production locations can be used for each stage in the supply chain  Cost of production will depend on where production takes place  Sometimes a business will build their own factory abroad, by establishing a joint venture  Joint Venture = businesses in a collaborative relationship with a local producer

On your whiteboard write down: What are the benefits of imports? Extension Task: Are there any drawbacks of imports?

Benefits of imports  When items are unavailable in the domestic economy  Raw materials e.g. copper  Agricultural products e.g. pineapples  Manufactures with local skills not in the UK e.g. silk  Manufactures and services available in the domestic market but cheaper elsewhere. (e.g. Japanese electronics)  Gives consumers more choice  More competition, lower prices  Raises standard of living (consumers have more purchasing power)

Benefits of imports  When items are unavailable in the domestic economy  Raw materials e.g. copper  Agricultural products e.g. pineapples  Manufactures with local skills not in the UK e.g. silk  Manufactures and services available in the domestic market but cheaper elsewhere. (e.g. Japanese electronics)  Gives consumers more choice  More competition, lower prices  Raises standard of living (consumers have more purchasing power)

On your whiteboard write down: Reasons you think it may be easier to trade internationally than in the past Why do you think it is easier to trade now? Extension Task: Are there any issues that may make it more difficult to trade internationally?

Communications  Advances in technology has made it easier to organise and co- ordinate business operations around the world  Cost of telecommunications has dropped in recent years, which would encourage trade  Able to participate in conference calls or use mobile phones  Computers and broadband have enabled information to be communicated quickly

Transport  Advances in transport and air travel means people move more freely around the world  Shipping containers have cut costs of shipping goods and reduced transit times (no need for labour intensive loading/unloading)  Air freight prices have fallen enough for some perishable products to be exported  Computerised data handling makes it easier and cheaper to track goods in transit

Against The Clock

Task

Research Task  Mobile phones  The mobile phone industry is growing rapidly in developing countries (where there is no landline infrastructure) — the take-up of mobile phones in India is the fastest anywhere in the world.  You need to investigate why companies such as Vodafone and Nokia have chosen to target developing countries as a new source of revenue. The Oxfam website is useful, as is the Vodafone website.

Homework  Complete the research task

Plenary: Articulate!

Lesson Keywords  Supply Chain  Outsourcing  Globalisation

 On your cards Topic 1: Why have imports grown?  Write down:  2 or more things you found easy to understand/ remember from the lesson  What did you find difficult to understand Exit pass

Will be able to evaluate the impact of internationally trade on the business Evaluation ~ GCE Grade A* Will be able to propose reasons for trading internationally Synthesis ~ GCE Grade A Will be able to analyse the reasons for trading internationally Analysis ~ GCE Grade B Will be able to demonstrate understanding by using examples/cases Application ~ GCE Grade C Will be able to explain the considerations of trading internationally Comprehension ~ GCE Grade D Will be able to recall reasons a business will trade internationally Knowledge ~ GCE Grade E

Success Criteria