Visible and Invisible imports & exports Flashcards
global patterns of and inequalities in trade flows
what is trade
the buying and selling of raw materials
what is merchandise trade
selling of goods
what is non-merchandise trade
selling of services
what is free trade
international trade with no restrictions such as quotas, tariffs, subsidies and embargos
what are visible exports/imports
goods/materials
what are invisible exports/imports
services
benefits of free trade
economic specialisation
increased competition
greater flow of resources
economic growth
what is FDI
foreign direct investment, the purchase of land, construction or machinery in another country
criticisms of free trade
lack of protection for domestic producers
dominance of TNC’s
less control of taxation
issues of worker rights and environmental laws
what is a positive trade balance
a trade surplus
what is a trade surplus
more exports than imports
what is a negative trade balance
a trade deficit
what is a trade deficit
more imports than exports
benefits of a trade surplus
shows the country has a strong economy
country has more employment opportunities
disadvantages of a trade decifit
shows a country has a weak economy
with a high cost of borrowing
