Flows of Products

Question 1

How has international movement of products been made easier for developing countries?

Answer 1

Reduction in trade cost.
Transaction costs.
Tariffs.
Transport and time costs.

Question 2

Transaction Costs.

Answer 2

They have been reduced by improvements of flows of data and the ease with which capital can be transferred to pay for transactions.

Question 3

Transport and Time.

Answer 3

They have been reduced by process of containerisation which has enables more complex and long distance flows of products.
Air transport speeds delivery and reduces costs of more valuable cargo.

Question 4

Tariffs.

Answer 4

Reduction in tariffs in global trade.

Encouraged by WTO.

Question 5

Containerisation.

Answer 5

System of standardised transport using large steel containers to transport goods.
They may be transferred between ships, trains and lorries.
Cheaper efficient transport.

Question 6

Tariffs.

Answer 6

Tax or duty placed on imported goods with the intention of making them more expensive.
So they don’t sell at lower prices than home-based goods.