4.1.1 - Globalisation Flashcards
What’s the definition of globalisation?
A process in which national economies have become increasingly integrated and interdependent.
Name 2 CONSEUQNCES of globalisation
- High growth
- Inflation
- Higher employment
- Footloose companies (companies moving headquarters)
Name 2 CAUSES of globalisation
- Inability to produce goods
- Increased demand
- Transportational links
What is NAFTA
A trading bloc to promote trade between the U.S., Canada, and Mexico. The agreement, which eliminated most tariffs on trade between the three countries.
What are tariffs?
Tariffs area tax or duty to be paid on a particular product that is imported or exported.
What is an import?
Goods/services that are bought into a country from another.
What’s an export?
A good or service that is sold out from a country to another.
What is globalisation also a movement of?
It’s a movement of people as well.
Name 2 countries that are in the EU
- Germany
- Italy
- France
- Denmark
- Netherlands
- Sweden
- Belgium
- Luxembourg
- Portugal
Name 2 benefits of being in the EU
- All EU citizens have the right to study, work or retire in any EU country
- Free trade among its members
- Stimulus to GDP growth, more jobs, higher wages and pensions;
What’s inward investment?
When a foreign company invests into another country.
What’s the definition of economic growth?
The increase in the real value of goods and services as measured by the annual percentage change in real Gross Domestic Product (GDP).
What’s the definition of inflation?
The sustained increase of the average price level expressed as a percentage.
What’s the definition of employment
The percentage of the population of working age that are in full-time or part-time paid work.
What is USMCA.
A trade agreement between the US, Mexico and Canada.
