Economics Unit 3

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  • Created by: Ashvarya
  • Created on: 20-11-14 18:58
an expansion of world trade in goods and services, leading to greater international interdependence
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Multinational company (MNC)
a company that has operations all over the world
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Absolute advantage
when a country is able to provide a good or service using fewer resources and at a lower cost than another country
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being better than another country at providing a good or service, in terms of the quantity of output and lower cost
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International trade
is the exchange of goods and services across international boundaries
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Free trade
an absence of tariffs, quotas and regulations designed to reduce or prevent trade among nations
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goods and services which UK firms provide and sell to people and firms not resident here. They result in money coming into the UK.
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They are goods and services provided by firms based overseas to residents of the UK. They result in money going out of the UK.
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where an action is taken that reduces international trade
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a tax placed on imports to increase the price and reduce the quantity demanded. This makes foreign imports more expensive.
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a physical limit on the number of goods and services imported into a country - it can be a stated number or a percentage of the total market
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a ban on the import of a good or service
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These are a variety of rules and written laws, which many countries have to limit imports. This limits international trade.
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Single market
the economies of different countries can be treated as one when a firm is considering its domestic market
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Customs union
a group of countries, such as the EU, have free trade between members, but a common external barrier.
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Single currency
a group of countries agree to adopt the same currency and to have one monetary policy
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Current account
the balance of trade in goods and services plus net investment incomes from overseas assets
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Balance of trade in goods
the export of goods from the primary and secondary sectors minus the import of these goods
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Balance of trade in services
the export of tertiary sector services minus the import of these services
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Current account deficit
the value of imports exceeds the value of exports
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Current account surplus
the value of exports exceeds the value of imports
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It is a general slowdown in economic activity, where the unemployment rate rises significantly. It is negative economic growth.
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Multinational company (MNC)


a company that has operations all over the world

Card 3


Absolute advantage


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Card 5


International trade


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