A private hospital in the UK buys insurance cover from an insurer based in France. The cover protects the hospital's buildings in the UK. From the UK's point of view, which statement correctly classifies this purchase?
It is an export because the French insurer sells its service to the UK.
It is an export because the money paid for the cover leaves the UK.
It is an import because a UK buyer pays for a service supplied from France.
It is domestic trade because the insurance cover is used in the UK.
118 exam-style questions on AQA GCSE Economics 2.4 International trade and the global economy, covering 2.4.1a The importance of trade, 2.4.1b Advantages of trade and interdependence, 2.4.1c UK exports and imports, 2.4.2a How exchange rates are determined, 2.4.2b Effects of exchange rate changes, 2.4.3a Free-trade and its arguments, 2.4.3b Free-trade agreements such as the EU, 2.4.4a Features and growth of globalisation, 2.4.4b Benefits and drawbacks of globalisation, and 2.4.4c Moral, ethical and sustainability considerations. Each one has a worked solution and a mark scheme showing where the marks go.