Economics Theme 3

Kanashii Kanashii Kanashii Kanashii

Absolute Poverty
Absolute poverty is not having enough income to provide the basic necessities for survival.
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Aid is given by both governments and NGOs to countries that are struggling to reduce poverty or deal with disasters.
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Balance of Payments
The accounts that record all international transactions, including trade and capital movements
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Brazil, Russia, India, China, four of the worlds largest growing economies.
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Commodities are raw materials that are traded in bulk and are not recognizably originating from any business.
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Common Market
Common markets have completely freee trade internally and a single unified trade policy covering all member countries' trade with the rest of the world.
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Corporate Culture
Corporate culture is the set of important assumptions that are shared by people working in a particular business and influence the ways in which decisions are taken there.
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Corporate Social Responsibility
CSR means taking decisions that reflect all stakeholders' interests.
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Current account of the balance of payments
Current accounts of the balance of payments records all trade in goods and services.
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Developed countries
Developed countries have high incomes. Through capital investment, they have acquired sophisticated production facilities.
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Developing countries
Developing countries have relatively low standards of living, compared with developed countries. They may have small manufacturing sectors,
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Diversifying means selling more than one product, or the same product in more than one market.If one market shrinks, profits can still be made with other products or in other markets.
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Economic Growth
Economic growth refers to the rate of growth of output, real incomes and GDP.
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Emerging economies
Emerging economies are characterised by rapid economic growth. They have big increases in manufacturing output and standards of living are rising. Many people may still be involved in agriculture.
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Ethical decision making
Ethical decision making means following codes of practice that embody moral values.The objective is to do the right thing, acting with honesty and integrity.
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Ethnocentric Model
An approach to marketing based on the tendency to look at the world from the perspective of one's own culture. A business may simply do the same everywhere as it does in its home markets.
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Free Trade Areas
Free trade areas are groups of countries that trade completely freely with each other, with no trade barriers, but each member country has its own independent trade policies with the rest of the world.
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Geocentric Approach
Geocentric approach sees the world as a potential market with both similarities and differences in domestic and foreign markets. An effort is made to develop integrated world market strategies to gain the best from both markets.
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Gini Coefficient
The Gini coefficient provides a measure of income inequality. A coefficient of 0 would mean income is equal between all individuals, whilst a coefficient of 1 would mean one person within the population has all the income and everyone else none.
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Global Niche markets
Global niche markets are smaller, more specialized parts of the global market where customers in more than one country have particular needs that are not fully met by the global mass market.
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Glocalisation emphasizes the idea that a global product or service is more likely to succeed if it is adapted to the specific requirements of local practices and cultural expectations
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Human Development Index (HDI)
HDI provides a measure of development based on access to health care and education as well as national income. It therefore includes qualitative as well as quantitative aspects of development.
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Incentives are financial rewards that can influence decisions. Individuals may work harder ,whilst businesses may respond to incentives to invest.
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International Monetary Fund (IMF)
The IMF, co-ordinates the international monetary system. It tries to keep the system stable, providing adequate finance for world trade to continue uninterrupted.
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Inequality refers to the difference in incomes and wealth within societies. The US and Latin countries have unequal disparities in income and wealth.
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Interdependence refers to the way which different economies have become increasingly reliant on one another through trade, capital movements and international agreements.
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Lorenz Curve
The Lorenz curve shows the extent of inequality in a particular economy.
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Market Saturation
Market saturation occurs when it becomes impossible to expand sales further in that particular market.
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Minimum wage
Minimum wage is the minimum rate of pay per hour that must by law be paid by employers.
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Nominal value
Nominal value means value in money terms at current prices. No allowance is made for inflation.
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Non-governmental organisations (NGO's)
NGO's a term applied to not-for-profit organisations that either act as pressure groups or as charities or both.
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Non-price competition
Non-price competition refers to any competitive activity that does not involve cutting prices.
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Offshoring means locating production in a foreign country. The objective may be to exploit cost savings, most often lower wage rate. Or it may be to be close to a thriving market or to avoid trade barriers.
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Polycentric Model
An approach that considers each target market to be unique. Each of its businesses develop unique business and marketing strategies that suit the relevant location.
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Poverty Trap
The poverty trap is a situation in which someone would be even poorer or not much richer if they had a job because they would no longer receive unemployment benefits from the government.
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Pressure Groups
Pressure groups are organisations that attempt to influence public policy and especially government legislation, regarding their particular concerns and priorities.
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Protectionism is any government policy aimed at protecting the domestic market from competing imports.
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Purchasing power parity (PPP)
PPP is a way of adjusting monetary values to allow for differences in prices between countries.
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Quotas are limits on the level of specific imports in any one year.
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Real values
Real values refers to values that take into consideration inflation.
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Redundancies are job losses that result from fewer employees being needed, because of more capital intensive production or falling demand for the product.
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Relative poverty
Relative poverty affects those who do not have enough income to participate in the normal life of the society they live in.
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Risks are threats that may or may not occur, but can be quantified using probabilities.
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Groups of people who have interests and values in common. This can be based on hobbies ,life-style or ethnic or religious differences.Businesses can target subcultures as potential profitable niche markets.
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Subsidies are sums of money paid by the government to a producer, so that the price to the customer will be lower than it otherwise would have been.
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Supply chains
Supply chains are sequences of processes that follow one another from start to finish of production.
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Tariffs are taxes on imported goods. They make the price higher; sales will generally be lower.
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Technology and skllls transfer
Occurs when FDI brings new businesses into an economy and employees learn new skills that take with them when they change jobs.
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Trade bloc
Trade blocs are groups of countries where barriers to trade are reduced or eliminated between member states.
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Trade creation
Trade creation occurs when there is an increase in total amount of goods traded because of reduced trade restrictions within a trading bloc.
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Trade diversion
Trade diversion occurs when a trading bloc reduces imports from non-member countries, enabling businesses within member countries to increase sales inside the trading bloc.
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Trade liberalisation
Refers to the process which trade barriers are eliminated.
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Trade unions
Trade unions are organisations that represent employees, through bargaining power, in negotiations with employers.
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Transfer pricing
Setting of the price for goods and services sold between leagal entities of an enterprise. For instance, Starbucks sets their price to other indirect Starbucks company so that they can have lower taxes.
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Wealth consists of accumulated assets, including bank deposits, shares, property and businesses.
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World Bank
An institution that lends to developing countries in order to fund projects which will help them to raise their incomes and make economies more efficient.
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Working Conditions
Working conditions refers to possible events in workplaces that may affect the welfare of employees.
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World Trade Organisation (WTO)
The WTO supervises world trading agreements and trade negotiations and helps resolve disputes between governments and businesses.
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Other cards in this set

Card 2


Aid is given by both governments and NGOs to countries that are struggling to reduce poverty or deal with disasters.



Card 3


The accounts that record all international transactions, including trade and capital movements


Preview of the back of card 3

Card 4


Brazil, Russia, India, China, four of the worlds largest growing economies.


Preview of the back of card 4

Card 5


Commodities are raw materials that are traded in bulk and are not recognizably originating from any business.


Preview of the back of card 5
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