4.1 Globalisation Flashcards
(21 cards)
Economic growth
An increase in the GDP - value of output of goods and services produced in an economy over time
Economy
An area/country where goods and services are produced, sold and bought
Emerging economy
The economies of developing countries where there is rapid growth, but also significant risk
GDP
Gross Domestic Product. Measures the output of goods and services in an economy over a period of time
HDI
Human Development Index (HDI) combines the factors of life expectancy, education and income to determine the quality of development of citizens within a country
Literacy
A key indicator of growth. The literacy rate looks at the percentage of adults that can read and write
Exports
Goods or services that a firm produces in its home market, but sells in a foreign market
FDI
When a business invests by setting up operations or buying assets in businesses in another country. When a business with head office in one country, sets up factories, offices etc in another country
Imports
Goods and service that are bought into one country from another
Globalisation
Globalisation is the economic integration of different countries through increasing freedoms in the cross-border movement of people, goods/services, technology & finance
International trade barriers
A regulation or policy that restricts international trade, for example: tariffs, quotas, customs duties, rules and regulations
Trade liberalisation
The reduction, and sometimes removal, of trade barriers between countries
Transnational companies
Companies that own or control production or service facilities outside the country in which they are based
Domestic subsidies
Financial support given to a domestic producer to help compete with overseas firms
Import quotas
A physical limit on the quantity of imports allowed into a country
Protectionism
Policies used by a government to protect domestic businesses by making foreign owned products less attractive. Examples include tariffs, quotas, subsidies and regulation
Tarrifs
A tax on imports to make them more expensive
Trade barriers
Measures designed to restrict trade
EU
The European Union, the most powerful trading bloc in the world. A single market that guarantees the free movement of people, goods, services and capital through member states
Single market
A market where almost all trade barriers between member have been removed and common laws or policies aim to make the movement of goods, services, capital and labour between countries easy
Trading bloc
A group of countries that trade freely with reduced or no tariffs and quotas on trade between businesses in these countries
