Globalisation Flashcards
GDP
The value of all products and services produced within a set period of time
Per capita
Looking at data per head of population
Balance of payments deficit
Imports outweigh exports
Fixed capital formation
Investments in long term assets such as roads and buildings
Invisible export
The sale of a service to an overseas customer
Free trade
When countries can export to each other without hurdles such as tariffs or quotas
Purchasing power parity
Adjusting income levels to allow for differences in the cost of living
Trading bloc
A regional group of countries agreeing to free trade and sometimes free movement of labour
Inward foreign direct investment
Investment into a country such as the uk from companies abroad
Outward foreign direct investment
Investment from a country such as the UK renting property in Brazil
Saturated market
Almost every demand for a product has been fulfilled
Scientific management
Fw Taylor suggested managers maximize their productivity by calculating how best to divide up tasks into smaller fragments, then incentivize workers to produce exactly what is set out by managers
Liberalization
Minimizing the rules and regulations faced by businesses; on a global scale, reducing the barriers to freely moving international trade
Regulations
Rules created as a result of laws passedby parliament
Counter cyclical
Expansionary government policies to counter a downturn in the economic cycle
Keynesian
An economic policy based on john Keynes urging the government to boost economies when hit by recession
Structural unemployment
Long term unemployment as a fundamental economic shift makes an industry obselete
Trade war
Economic battle between two countries based on protectionist measures.
Home market
The number of customers that can be reached without needing to jump administrative hurdles
Single market
Dismantling trade barriers within Europe so that all 28 countries can treat the whole region as their home market
Globalization
The growth of international trade that has made an increasing number of markets global rather than national.
