Economics-Unit 3 keywords 0.0 / 5 ? EconomicsKey wordsGCSEOCR Created by: Oliver MoodieCreated on: 12-03-15 09:46 Globalisation An expansion of world trade leading to greater international interdependence 1 of 23 Multination company A company that has operations all over the world 2 of 23 Specialisation Being better than another country at providing a good or service, in terms of quantity and lower costs 3 of 23 Absolute advantage whena country is able to provide an good or service using fewer resources and at a lower cost 4 of 23 International Trade The exchange of goods and services across international boundaries 5 of 23 Free Trade an absence of tarrifs, quotas and regulations designed to reduce of prevent trade among nations 6 of 23 Protection Actions taken that reduce international trade 7 of 23 Tarrif A tax on imports to increase the price and reduce the quantity demanded 8 of 23 Single Market The economies of different countries can be treated as one when a firmconsiders its domestic market 9 of 23 Customs Union A group of countries, such as the EU, have free trade between members, but a common externalities 10 of 23 Single Currency a group of countries agree to adopt the same currency and to have one monetary policy 11 of 23 Current account The balance of trade in goods and services plus net incomes from oversea assets 12 of 23 Balance of trade in goods (exports of goods from primary and secondary sectors) - (imports of these goods) 13 of 23 Balance of trade in services (exports of tertiary sector services) - (imports of these goods) 14 of 23 Current account deficit The value of imports exceed the value of exports 15 of 23 Current account surplus The value of exports exceed the value of imports 16 of 23 Exchange rate How much of one currency needs to be given up to buy one unit of another currency 17 of 23 Floating exchange rate When the prices of two currencies if determined my market forces 18 of 23 Fixed exchange rate When the central bank of an economy tries to decide on the price of a currency 19 of 23 International competitiveness The ability of companies to compete with companies from other countries 20 of 23 Competitiveness The ablilty of a country to compete internationally and maintain improvements in real output and wealth 21 of 23 Foreign Direct Investment (FDI) Investment by foreign companies in the production of goods and services in another country 22 of 23 Absolute Poverty On a world basis is defined as having less than $1.25 a day to live on 23 of 23
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