Why Countries Trade and UK Imports/Exports
Why no country can make everything, why trade matters to an economy, what the UK mainly imports and exports, the advantages of trade, and how global interdependence links countries together.
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Free interactive practice at using the material, which is what the marks are for.
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No country makes everything
No single country can grow, mine and build everything its people want. So countries trade: they sell what they are good at making and buy what they cannot make well or cheaply. This module looks at why countries trade, why it matters, what the UK mainly buys and sells, and how trade ties the world together.
Trade words to know
Learn these before you sort the ideas.
Exports against imports
Trade flows in two directions.
Give the reason, name who gains
In the exam, do not just say countries trade. Give a reason, such as a country not being able to make something itself, and then say who gains, such as shoppers getting more choice or firms reaching bigger markets. Remember trade also links countries, so a problem in one can spread to others.
Match the term
- an export
- an import
- interdependence
- trade
- something a country sells abroad
- something a country buys from abroad
- countries relying on one another
- buying and selling between countries
Match the advantage
- wider choice
- lower prices
- bigger markets
- access to resources
- shoppers can buy goods from around the world
- competition helps keep prices down
- firms can sell to customers abroad
- countries get materials they lack
Why do countries trade?
What is a main reason countries trade with one another?
- No country can make everything it wants by itself.
- A world law forces every country to trade.
- Only because shipping is enjoyable.
- To punish other countries.
Advantages of trade
Select the TWO genuine advantages of international trade.
- Shoppers get a wider choice of goods
- Firms can sell to bigger markets abroad
- Shoppers are left with fewer goods
- A country becomes fully self-sufficient
Count the goods traded
A country sells 4 types of goods to other countries and buys 6 types from them. Add the two figures to find how many types of goods it trades in total. What is the answer?
Order the trade
Put the steps of a country trading in order, earliest first.
- A country makes what it is good at
- It exports the extra abroad
- It earns income from the sales
- It imports what it cannot make
Complete the summary
A good a country sells abroad is an _____, and a good it buys from abroad is an _____. Countries trade because none can make _____ on its own, and this leaves nations relying on one another, known as _____.
Spot the UK imports
Tap the TWO goods the UK is more likely to import than to export.
- fresh food from warmer countries
- fuel and raw materials
- financial services
- high-value manufactured goods it makes
Judge the case
Read each case and choose the best answer.
- The UK buys bananas from a warmer country because it cannot grow enough itself. For the UK, what is this?
- A UK firm sells its financial services to companies overseas. For the UK, what is this?
- A shortage in one country pushes up the price of a good in many others. What does this show?
Explain international trade
Explain why countries trade with one another and give the advantages, and describe what the UK mainly imports and exports.
- Give one reason countries trade
- Give two advantages of trade and say who gains
- Describe one type of good the UK exports and one it imports