Topic 6 Flashcards
(38 cards)
What is globalisation commonly described as
- The trend towards a single global economy and society
- Or a process of increasing international networking which means that communities and economies that used to be isolated are increasingly linked
What does IMF stand for
International Monetary Fund
What is the IMF International Monetary Fund
A international body comprising 190!countries that aims to promote international co-operation on exchange rates and other economic matters
What does the IMF International Monetary Fund describe their aim as
To ensure the stability of the international monetary system- the system of exchange rates and international payments that enables countries and their citizens to transact with each other
What’s something people don’t like from globalisation
Undermines local culture, they don’t like the depersonalisation that they believe results from this . They feel there getting a one size fits all solution
Another aspect of globalisation people don’t like
Some people dislike that it supports increased offshoring
What does the sub prime market mean
Us lenders and other lenders around the world giving mortgages to people who couldn’t really afford it and at high risk of default
What are securities
A type of financial instrument sold to investors and other banks these securities fell in value when the defaults began
What is toxic debt
Securities fell in value once the defaults began banks and investment funds around the world which were left holding now know as toxic debt
What was the first UK bank to be hit from collapse
Northern Rock because they relied so heavily on borrowing to fund its mortgages
Because securities didn’t have a exact value what bad outcomes were caused because of this
Uncertainty in the market banks stopped lending to one another
The corporations bought out their rivals but what did they do with all the staff
Made them redundant because they didn’t need all the man power
What is offshoring
Practice of moving some of companies operational functions to overseas location
What is project Merlin
Agreement between government and banks that the latter would pay lower bonuses to their employees to make more money available for business loans
The real economy
The demand for and supply of products and services in uk and abroad
The eurozone crisis
Serious financial and economic problems being experienced by some of the countries that had adopted the euro as a currency
What does the WTO stand for and how many countries are a member
World Trade Organisation has over 160 member countries
What does the WTO World trade organisation do
And main function
Promotes co-operation and trade between those members , it’s the only international organisation dealing with the global rules of trade between nations
Main function : ensure trade flows as smoothly, predictably and freely as possible
What is the WTO essentially
A place where member governments try to sort out the the trade problems they face with each other
The economic unions around the world
- European Union : 27 member states
- Associations of southeast Asian nations : 10 members
- The Caribbean community: 15 full members and 5 associate members
What does it mean for a economy to become overheated
Which means businesses are unable to supply sufficient goods and services to meet the growing demand and so will push there prices up instead
What is the Happiness Survey
Uk households were asked how satisfied they were with their lives , the aim being to provide a fuller picture of how society is doing
Pound shops , Aldi effect , hard discounts
Cheap shops like Poundland , poundstrechers , 99p stores
What a country needs to adopt the euro and join the euro area
- Met standards of fiscal policy
- Central banks that are independent of the political process
- Low inflation and interest rates
- Established stable currencies over a certain time period
