2.4 globalisation Flashcards
(24 cards)
characteristics of globalisation
- increased FDI (foreign direct investment)
- world trade rising as a proportion of GDP
- increased migration
factors contributing (in last 50 years)
- trade liberalisation
- capital market liberation
- political change e.g. opening up of china and former USSR
- reduced cost of transport and communications
- increased significance of global companies
indicators of growth/factors of standard of living
- GDP per capita
- literacy
- health
- HDI (human development index)
developed (mature) countries
highest per capita incomes
emerging markets
developing countries that have undergone recent, rapid industrialisation
developing countries
lesser economically developed countries (LEDCs), less income per capita
economic growth
increasing GDP, more goods and services produced in an economy in a period of time
GDP
gross domestic product, measures total value of goods and services produced in an economy in a year
international trade
exchange of products and services between countries
specialisation
when we concentrate on a product or a task
trade blocs
groups of countries in specific regions that manage and promote trade activities and aim to reduce trade barriers between the member countries
most significant trade blocs
- EU
- European free trade arena (EFTA)
- USMCA between US, Mexico and Canada (formerly NAFTA)
- ASEAN, associato of southeast Asian nations
visible trade
selling and buying of tangible goods
invisible trade
selling and buying of services e.g insurance, banking, tourism, education
exports
movement of goods or commodities out of the country
imports
movement of goods or commodities into the country
trade surplus
value of visible exports is more than the value of visible imports (more money flowing in than out)
trade deficit
value of visible imports is more than the value of visible exports (more money flowing out than in)
exchange rates
price of one currency expressed in terms of another
strong pound
(appreciating currency)
when you get more foreign currency for a £ than you did before
weak pound
(depreciating currency)
when you get less foreign currency for a £ than you did before
IDEM
imports ÷, exports x
SPICED
strong
pound
imports
cheap
exports
dear
WPIDEC
weak
pound
imports
dear
exports
cheap
