Economics Unit 3 0.0 / 5 ? Economics7.1 - 9.2GCSEOCR Created by: AshvaryaCreated on: 20-11-14 18:58 Globalisation an expansion of world trade in goods and services, leading to greater international interdependence 1 of 22 Multinational company (MNC) a company that has operations all over the world 2 of 22 Absolute advantage when a country is able to provide a good or service using fewer resources and at a lower cost than another country 3 of 22 Specialisation being better than another country at providing a good or service, in terms of the quantity of output and lower cost 4 of 22 International trade is the exchange of goods and services across international boundaries 5 of 22 Free trade an absence of tariffs, quotas and regulations designed to reduce or prevent trade among nations 6 of 22 Exports goods and services which UK firms provide and sell to people and firms not resident here. They result in money coming into the UK. 7 of 22 Imports They are goods and services provided by firms based overseas to residents of the UK. They result in money going out of the UK. 8 of 22 Protection where an action is taken that reduces international trade 9 of 22 Tariff a tax placed on imports to increase the price and reduce the quantity demanded. This makes foreign imports more expensive. 10 of 22 Quota 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 11 of 22 Embargo a ban on the import of a good or service 12 of 22 Regulations These are a variety of rules and written laws, which many countries have to limit imports. This limits international trade. 13 of 22 Single market the economies of different countries can be treated as one when a firm is considering its domestic market 14 of 22 Customs union a group of countries, such as the EU, have free trade between members, but a common external barrier. 15 of 22 Single currency a group of countries agree to adopt the same currency and to have one monetary policy 16 of 22 Current account the balance of trade in goods and services plus net investment incomes from overseas assets 17 of 22 Balance of trade in goods the export of goods from the primary and secondary sectors minus the import of these goods 18 of 22 Balance of trade in services the export of tertiary sector services minus the import of these services 19 of 22 Current account deficit the value of imports exceeds the value of exports 20 of 22 Current account surplus the value of exports exceeds the value of imports 21 of 22 Recession It is a general slowdown in economic activity, where the unemployment rate rises significantly. It is negative economic growth. 22 of 22
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