Economics To Revise

Credit Card:

• Used in store & online
• Can spend the banks money (more than you have)
• Pay back in intervals
• High APR
• Credit limit

Specialisation:

• Workers become more skilled if focused on one task
• Quicker & more effective
• Lowers prices
• Higher wages
• Less flexible 
• If one part is ruined, the entire product is ruined
• May be boring

Importing:

• Money goes OUT of the UK
• Necessity to import
• We buy products from outside the UK (usually EU)
• More choice for consumers
• Lower prices
• Not good for economy
• We import: cars, food etc

Exporting:

• Money comes IN to the UK
• This is good for the economy
• We usually export to the EU- no taxes
• We import: cars, chemicals etc
• Products are made in the UK

Advantages:

• More choice
• More competition- Better quality, Lower prices
• More raw materials
• More jobs
• GDP rises

Disadvantages:

• UK firms may find it hard to compete
• Bigger carbon footprint
• More powerful MNCs
• UK is dependant
• Unstable prices

Social & environmental Issues:

• Costs more to transport
• More jobs in less developed countries

   x exchange rate (changes often) = $ (other currency)

$ (other curency) -- exchange rate = 

Sustainability: Making sure whatever you take is replaced for the future

Advantages:

• Cheaper labour
• Closer to markets and/or materials
• Increased competitiveness

Disadvantages:

• Unfamiliar cultures and/or languages
• Loss of jobs in UK
• Transport costs
• Unstable exchange rates could rise OR fall

FDI (Foreign Direct Investment):

• More jobs
• More tax money 
• More competition- More products, Better prices
• More competition
• Money leaves UK

Immigration:

• More tax payers
• More workers
• New skills
• More consumers
• Displace UK workers
• Strain on NHS and education

Emigration:

• Less benefits, pensions etc
• Less competition
• Division of families
• Higher death rate (more elderly)
• Loss of young