international trade and globalisation Flashcards
(23 cards)
Globalisation- the process by which the world is becoming increasingly interconnected through trade and other links
Quota- a limit placed on imports and exports
Embargo- a ban placed on imports and exports
Exchange control- a limit on the amount of foreign currency that can be obtained
Infant industries- new industries with relatively low output and high cost
Declining industries- old industries which are going out of business
Strategic industries- industries that are considered important for the survival or development of the country
Foreign exchange rate- the price of one currency in terms of another currency or currencies
Fixed exchange rate - an exchange rate whose value is set at a particular value in terms of another currency or currencies
Devaluation- a fall in the value of a fixed exchange rate
Revaluation- a rise in the value of a fixed exchange rate
Floating exchange rate - an exchange rate which can change frequently as it determined by market forces
Appreciation- a rise in the value of a floating exchange rate
Depreciation- a fall in the value of a floating exchange rate
Trade in goods- the value of exported goods and imported goods
Trade in goods deficit- expenditure on imported goods exceeding revenue from exported goods
Trade in goods surplus - revenue from exported goods exceeding expenditure on imported goods
Trade in services- the value of exported services and imported services
Trade in services deficit- expenditure on imported services exceeding revenue from exported services
Trade in goods surplus - revenue from exported services exceeding expenditure on imported services
Primary income - income earned by people working in different countries and investment income which comes into and goes out of the country
Secondary income - transfers between residents and non-residents of money
goods or services
Current account balance- a record of the income received and the expenditure made by a country in its dealings with other countries
