Have high per capita incomes, literacy levels and life expectancy. Typically have large service sectors.
1 of 26
Developing economies
Have low incomes, weak education and welfare systems, abundant cheap labour and relatively little capital investment. Setting up business may be risky or difficult.
2 of 26
Emerging economies
Have rising levels of capital investment and growing, increasingly productive secondary sectors. International trade is growing rapidly and leading to economic growth. Diversify into new lines of production, often in collaboration with MNC's.
3 of 26
Primary sector
Production of raw materials (i.e. agriculture, mining, quarrying)
4 of 26
Secondary sector
Manufacturing and the production of tangible goods.
5 of 26
Tertiary sector
Services and knowledge based industries.
6 of 26
Economic growth
The economy is producing more than it did before. Jobs are created and incomes rise, leads to increase in demand and further growth.
7 of 26
Inorganic growth
Taking over other businesses/merging
8 of 26
What are the four issues relating to the money value of GDP?
Inequality, exchange rates, the hidden economy, home produced goods
9 of 26
Purchasing power parity (PPP)
Data has been adjusted so that it allows for differing price levels in different economies. Uses exchange rates that give accurate comparisons of purchasing power.
10 of 26
Visible imports and exports
Include manufactured products, raw materials and natural resources (i.e. computers, cars, drinks etc.)
11 of 26
Invisible imports and exports
Include all kinds of services (i.e. architecture, tourism)
12 of 26
Division of labour
Organising employees so that individuals specialise in one part of the production process. As they become quicker and more proficient at specific tasks, output increases.
13 of 26
Specialisation
The process by which individuals, businesses and economies concentrate on creating and selling those goods and services they produce most efficiently and cost effectively. This gives countries a specific competitive advantage.
14 of 26
Foreign direct investment
The flow of investment from one country to another. Occurs when businesses set up factories or other kinds of production/distribution facilities in other countries.
15 of 26
Offshoring
Locating all or part of the production process in a foreign economy, usually where production costs are lower. Can mean getting foreign businesses to supply the products.
16 of 26
Multinational corporations (MNC's)
Businesses which operate or have assets in more than one country
17 of 26
Supply chain
The sequence of processes where many independent supplier contribute to the production of the finished product. (different businesses are involved in the production of a final product)
18 of 26
Outsourcing
Shifting all or part of the production process to other businesses in order to reduce input costs
19 of 26
Protectionism
The way in which governments may control imports so that domestic producers face less competition. Reduced imports allow them to charge more even if their product is lower quality.
20 of 26
Trade liberalisation
The process of limiting and reducing barriers to trade so that the economies involved move closer to free trade. (buyers have more choice about where they obtain the products they want)
21 of 26
Trade barriers
Trade barriers make trade more difficult to protect inefficient industries.
22 of 26
Tariffs
Put a tax on imports
23 of 26
Quotas
Only allow a limited quantity of imports of certain specific products.
24 of 26
The knowledge economy
How knowledge, skills and innovative technology drives economic activity and creates a competitive advantage
25 of 26
Creative destruction
The way in which competitive advantage shifts away from existing businesses while new, innovative, products and production processes develop and businesses grow in size and importance.
26 of 26
Other cards in this set
Card 2
Front
Developing economies
Back
Have low incomes, weak education and welfare systems, abundant cheap labour and relatively little capital investment. Setting up business may be risky or difficult.
Comments
No comments have yet been made