Unit 3 Key Terms

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  • Created by: Emilyy11
  • Created on: 27-04-14 12:42
Globalisation
An expansion of world trade in goods and services leading to a greater international dependence.
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Multinational 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 the quantity of output and lower cost.
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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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International trade
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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Protection
Where an action is taken that reduces international trade.
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Tariff
A tax placed in 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 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 sector 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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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
Where the prices of two currencies are decided by market forces.
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Fixed exchange rate
Where the central bank of a country 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 ability of a country to compete successfully internationally and maintain improvements in real output and wealth.
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Foreign direct investment
The investment by foreign countries 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

Multinational company

Card 3

Front

Being better than another country at providing a good or service, in terms of the quantity of output and lower cost.

Back

Preview of the back of card 3

Card 4

Front

When a country is able to provide a good or service using fewer resources and at a lower cost than another country.

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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