Economics-Unit 3 keywords

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Globalisation
An expansion of world trade leading to greater international interdependence
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Multination company
A company that has operations all over the world
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Specialisation
Being better than another country at providing a good or service, in terms of quantity and lower costs
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Absolute advantage
whena country is able to provide an good or service using fewer resources and at a lower cost
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International Trade
The exchange of goods and services across international boundaries
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Free Trade
an absence of tarrifs, quotas and regulations designed to reduce of prevent trade among nations
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Protection
Actions taken that reduce international trade
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Tarrif
A tax on imports to increase the price and reduce the quantity demanded
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Single Market
The economies of different countries can be treated as one when a firmconsiders 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 externalities
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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 incomes from oversea assets
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Balance of trade in goods
(exports of goods from primary and secondary sectors) - (imports of these goods)
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Balance of trade in services
(exports of tertiary sector services) - (imports of these goods)
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Current account deficit
The value of imports exceed the value of exports
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Current account surplus
The value of exports exceed the value of imports
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Exchange rate
How much of one currency needs to be given up to buy one unit of another currency
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Floating exchange rate
When the prices of two currencies if determined my market forces
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Fixed exchange rate
When the central bank of an economy tries to decide on the price of a currency
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International competitiveness
The ability of companies to compete with companies from other countries
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Competitiveness
The ablilty of a country to compete internationally and maintain improvements in real output and wealth
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Foreign Direct Investment (FDI)
Investment by foreign companies in the production of goods and services in another country
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Absolute Poverty
On a world basis is defined as having less than $1.25 a day to live on
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Other cards in this set

Card 2

Front

A company that has operations all over the world

Back

Multination company

Card 3

Front

Being better than another country at providing a good or service, in terms of quantity and lower costs

Back

Preview of the back of card 3

Card 4

Front

whena country is able to provide an good or service using fewer resources and at a lower cost

Back

Preview of the back of card 4

Card 5

Front

The exchange of goods and services across international boundaries

Back

Preview of the back of card 5
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