🌐 Deck 4: The Global Context Flashcards
(9 cards)
Q: 🌎 What is globalisation?
A: The process by which businesses and other organizations develop international influence or start operating on an international scale.
Q: 📦 What are the benefits of international trade?
A: Access to a wider variety of goods and services, economies of scale, and increased market competition.
Q: 🛡️ What is protectionism?
A: Economic policies implemented to restrict imports to protect domestic industries from foreign competition.
Q: 💱 What are exchange rates?
A: The value of one currency for the purpose of conversion to another.
Q: 📊 What is competitiveness?
A: The ability of a country to sell its goods and services in international markets at competitive prices.
Q: 🔁 What are floating exchange rates?
A: Exchange rates determined by market forces without direct government or central bank intervention.
Q: ⚖️ What is the current account?
A: Part of the balance of payments that includes trade in goods and services, income, and transfers.
Q: 📉 What is a current account deficit?
A: When the value of imports and transfers exceeds exports.
Q: 🚢 How do exchange rates affect trade?
A: A strong currency makes exports expensive and imports cheap; a weak currency does the opposite.
