International trade and access to markets Flashcards
(25 cards)
Agglomeration
When companies in similar industries locate near to each other because of the the benefit gained by being able to share ideas and resources - called ‘agglomeration economies’.
Embargoes
Partial or complete bans on trade with particular countries/bodies. Usually for political matters rather than commercial
Fair trade
A social movement that aims to help agricultural producers in LIC/NEEs gain better trading deals and promote sustainability
Free market
An economic system without intervention from governments or price-setting. This is the aim of the WTO
G20 group
International forum for the governments and central banks of 20 major economies, the EU is one member and it aims to give a greater voice to the less developed of the large economies as the WTO was not seen to be doing this
G7 group
International forum of Canada, France, UK, US, Germany, Japan, Italy. These countries represent more than 64% of net global wealth. Very high HDI and wealth is required to be a member
Glocalisation
When a product, service or company is marketed to local tastes but it is sold globally e.g. Halal McDonald’s products
Group of 77
A UN coalition of 135 developing countries (although it does include China as it was formed in 1964). It aims to give an enhanced negotiating power to these countries
Horizontal integration
When companies diversify their operations by expansion, merger or takeover.
Import licence
A licence issied by a national government authorising the import of goods from somewhere
Import quota
A limit on the quantity of a particular product that can be imported
LDCs
Least developed countries. LICs that face severe structural impediments to sustainable development and are highly vulnerable to economic and environmental shocks. There are currently 47 which can access exclusive international support measures in development and trade assistance
Mercosur
Formed in 1991. A similar functioning to the EU but for Brazil, Argentina, Paraguay and Venezuela (suspended) (Bolivia and Ecuador have applied to join)
Multiplier effect
When an initial injection of money into an economy creates additional income and economic flow
Pacific alliance
Similar to Mercosur but for Chile, peru, Colombia, Mexico and does more bilateral agreements. It tends to look east and north
RTAs
Regional trade agreements. Reciprocal trade agreements among WTO members, can include free trade agreements and customs unions
Special and differential treatment
WTO agreements which contain provisions to give developing countries special rights
OECD
Organisation for economic cooperation and developments. Intergovernmental economic organisation with 35 members. Tries to stimulate economic progress and trade. Founded in 1960.
Subsidies
Grants or allowances to domestic producers to increase their profitability against imported goods. Over 40% of EU budget goes to subsidies
Trade restrictions
Other import restrictions that may include standard regulation or measures to prevent products of exploitation being bought.
TTIP
Transatlantic trade and investment partnership. A potential trade deal between the EU and US that could boost the EU economy by €120bn and create millions of jobs. There are however concerns over the food and environmental standards.
TPP
Trans-Pacific partnership. An unratified agreement between several countries including the US, Japan, Peru, Chile, Singapore. Trump withdrew from it so it does not exist
UNCTAD
UN conference on trade development. A group that works to make sure that globalisation’s benefits are felt more effectively and fairly. They measure progress by the Sustainable Development Goals
Vertical integration
When a company’s supply chain is fully owned by that company. Gives them full control. E.g. BP
