A UK manufacturer of specialist sports equipment buys components from overseas and sells some of its products abroad.
| Trading relationship | Share of the manufacturer's activity |
|---|---|
| Components bought from Country A | 75% |
| Sales made to customers in Country B | 40% |
A port closure in Country A delays component deliveries. At the same time, an economic slowdown in Country B reduces orders for the manufacturer's products.
Explain how each of these overseas events could harm the manufacturer.
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.