Terminology, Concepts and Business Terms

Answer the following questions:

1. Examine the role that Comparative Advantage might play in International Business. Give an example
of your own.
(2 Marks) [K/2; T/1]
By encouraging countries to produce, they can more efficiently produce goods and trade with other
countries to boost international trade。

2. What is GDP? Do you see any issues or problems with the way it is calculated and used?
(2 Marks) [K/2]
Gross Domestic Product is the total value of all goods and services produced in a country during a specific
period.

A country might have a high GDP while having significant income inequality.
3. Define the Brain over Brawn theory, giving real-world examples where possible.
1 Mark each) [K/2]
Brain（IQ） are more important than brawn（physical strength） for achieving success.
Innovation is the main driving force of social development.
EX.China's labor force is abundant and it needs to develop more innovatively.
 Level 0 Level 1 Level 2 Level 3 Level 4

Knowledge 0 1 2 3 4
6 marks
Thinking 0 1 2 3 4
1 marks