2.4 LIFE IN GLOBAL ECONOMY Flashcards
(16 cards)
Describe globalisation
the process of greater integration and
inter-connectedness between countries
how has transport contributed to an increase in globalisation
its now easier and more efficient to trade via countries making trade easier
whta is the name of the institute that reguate wrld trade
world trade organisation ( WTO )
what are MNCs
multinational corporations
name 2 countries that have grown the most due to globalisation
india and china
What is GDp per capita
GDP of a country divided by the population in that country
give 2 limitations using GDP to measure the health of an economy
- does not give any indication to the distribution of income and wealth
- cannot track the performance in hidden markets
list the 3 components of the HDI index
- education
2.life expectancy - standard of living
how does population growth in developed countries compared that in developing countries
much slower population growth in developed economies
which type of economy usually has a stronger agricultural sector
developing countries
which countries form the BRIC+ economies
Brazil
Russia
India
China
UAE
Iran
Egypt
what is specialisation
occurs when each worker completes. specific task in the production process, can lead to increased productivity and reduce average costs of production
2 disadvantages of specialisation
- employee motivation is compromised due to autonomous work
- structural unemployment, due to ,mismatch of skills required and provided
define comparative advantage
occurs when one country can produce a good/service at a lower opportunity cost than another country
define absolute advantage
this is when one country can produce more units of a goos/service than a different country with the same factor of inputs
