International trade involves the work of customs authorities.

Mark scheme

Marking points from the official mark scheme (May/June 2020). The mark or mark type is shown in brackets.

1. [2] Quantity/value of exports
2. [2] Quantity/value of imports
3. [2] Countries of destination of exports
4. [2] Countries of origin of imports
5. [2] Tariffs are a tax on imported goods (1) causing the price of imported goods to rise (1) leading to a reduction of demand for these goods (1) consumers will buy (cheaper) domestic goods instead (1)
6. [2] Quotas place a limit on the number/volume of imported goods (1) leading to shortages/reduced supply (1) will increase import prices (1) less dumping of goods on a market (1)
7. [3] Yes - increased credit risk (1) it is more difficult to establish the credit-worthiness of a foreign company (1) leading to possible losses (1)
8. [3] No - increased market (1) there may be better economic conditions in a foreign country (1) leading to possible increase in sales (1)
9. [6] Global markets are when goods and services are sold worldwide.
10. [6] International trade is trade between countries. The process of both makes countries interdependent of each other.
11. [6] International trade enables a country's economy to obtain goods which they may not be able to produce themselves, and to export the goods that they do produce.
12. [6] With globalisation, countries build commercial relationships, for example, MNCs, such as car manufacturers, have their head office in one country but often make and assemble their cars in other countries where labour is cheaper then sell their cars all over the world.
13. [6] Lower costs of transport and improved technological communication have made it easier to move goods over greater distances and make rapid electronic payments. As it become easier, more consumers want to purchase goods and services from other countries.
14. [6] However, there are still trade barriers and friction between some countries which limits globalisation because some countries want to protect their own domestic industries and jobs from foreign competition.
15. [6] Evaluation: Overall, globalisation and international trade have become a much more integral and growing part of many countries' economies even though many goods and services are still produced and consumed domestically where possible. This increasing trend of goods, money and workers flowing between countries is likely to continue as businesses and consumers think more globally and technology becomes even faster and more reliable.