Key Words

Question 1

Balance of payments

Answer 1

Difference between a country’s inflow and outflow of money

Question 2

Capital

Answer 2

Accumulated wealth used to generate more wealth

Question 3

Comparative advantage

Answer 3

The principle that countries benefit from specialising in an economic activity which they are more efficient or skilled in

Question 4

Containerisation

Answer 4

The shipping of goods in standard metal box

Question 5

De - industrialisation

Answer 5

The absolute decline in a countries importance in manufacturing

Question 6

FDI

Answer 6

inward investment by a foreign company in a country

Question 7

Global supply chains

Answer 7

Flows of materials , products ,services and finance in a network of suppliers/manufacturers/distributors and customers globally

Question 8

Inter regional trade

Answer 8

The flow of national trade among major world regions

Question 9

Intra regional

Answer 9

Trade within one or other of the word regions (one place)

Question 10

Informal sector

Answer 10

Parts of the economy where people do not need qualifications to work

Question 11

Interdependence

Answer 11

Interrelationships between ACs and LIDCs through trade/foreign aid/FDI

Question 12

Knowledge economy

Answer 12

Wealth creating activities that gather,store and analyse knowledge ( e.g health /tech/education)

Question 13

Merchandise

Answer 13

All imports and exports through a country

Question 14

Multiplier effect

Answer 14

A new or expanding economic area that creates additional employment —> so more money gets reinvested into the goods and services bought

Question 15

New international division of labour

Answer 15

Re-organisation of production at the global scale as a result of industrialisation —> created pattern of higher paid jobs in ACs

Question 16

Post industrial

Answer 16

A society ad economy no longer dominated by the secondary sector but where majority in the tertiary ( services) sector

Question 17

Services

Answer 17

Tradeable activities providing expertise which relies on workforce skills, experience and knowledge rather than physical production

Question 18

Quarternary sector

Answer 18

Economic activities that provide service to other economic activities

Question 19

Single market

Answer 19

An economic union of countries trading with each other without internal boarders or tarrifs

Question 20

TNCs

Answer 20

A very large company with factories operating in more than one country

Question 21

Out sourcing

Answer 21

the practice of having certain job functions done outside a company instead of having an in-house department to manufacture or manage this aspect.

Question 22

Comparative advantage

Answer 22

countries or regions benefit from specializing in an economic activity in which they are relatively more efficient or skilled.