1

Question 1

BRIC economies

Answer 1

Brazil
Russia
India
China
South Africa

Question 2

Super powers

Answer 2

Countries with global influence and power

Question 3

MINT

Answer 3

Mexico, Indonesia, Nigeria, and Turkey

Question 4

economy

Answer 4

is a state of a country in terms of the production and consumption of goods and services and supply of money

Question 5

Indicators of Economic growth

Answer 5

GDP - sum of the value of everything they produce as a nation

Literally rates - are a key indicator educational success

Health - life expectancy

HDI - human development index - combines life expectancy ,education, per capita incomes. Is used to rank countries

Question 6

Specialisation

Answer 6

becoming an expert at one skill

Question 7

Benefits of specialisation

Answer 7

Increased productivity

more resources devoted to one thing instead of being spread out across many different things helps EOS

competitive advantage

increased productivity will lead to GDP growth and boost economy

Question 8

Negative impacts of specialisation

Answer 8

a country may become over reliant on one industry and does not spread risk

other countries may be cheaper

if it grows to big may suffer from DEOS through lack of communication

Question 9

FDI benefits

Answer 9

Jobs , skilled workforce

Question 10

Trade liberalisation

Answer 10

process 0f making international trade easier through relaxation of tariffs and barriers

Question 11

GATT

Answer 11

new jobs for unskilled workers (low labour costs)

The General Agreement on Tariffs and Trade is a legal agreement between many countries, whose overall purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas

Question 12

benefits of trade liberalisation

Answer 12

helps lower prices as there is less tax to pay

broadens the range of quality goods and services available because they are now able to buy imported goods

More competition means lower prices and increased quality

investment in the area

access to foreign markets

Question 13

Drawbacks of trade liberalisation

Answer 13

Some business may not be able to keep up w competition and may be forced out of the market

Question 14

how has politics increased globalisation of markets

Answer 14

politics now happens on a global scale meaning there are less protectionist policies
and more open trade between nations

Question 15

Factors influencing globalisation

Answer 15

Transport - cheaper, EOS businesses can ship more quantity.

Communication - messages can be sent from anywhere in the wold

Increased MNCs -

Question 16

Globalisation caused by FDI

Answer 16

companies investing or setting up production in other countries to avoid trading blocs

Can give countries income generation , jobs , GDP growth , skills …

Question 17

protectionism

Answer 17

Protecting a country’s domestic industries from foreign competition by taxing imports, imposing quotas or passing laws

Question 18

Tariffs

Answer 18

A tax placed on an import to increase its price and decrease its demand

increases the price of the product as costs are higher meaning there is a fall in demand

consumers will the switch to domestic goods

gives domestic producers price advantage

can raise money for government to spend on infrastructure

Question 19

negatives of placing tariffs

Answer 19

can lead to job loss as having to pay tariffs can lead to reduction In production

some products do not put off customers willing to pay for unique imported product even if tariffs have raised the price

Question 20

Reasons for Tariffs

Answer 20

poorer countries may impose heavy tariffs on imports to raise much needed funds for health care and education

Tariffs are sometimes only used on products that have negative impacts like Cigarettes

Protectionism

Question 21

Quota

Answer 21

Physical limit on quantity of goods imported or exported

imposing a limit will increase share of the market available for domestic products

Question 22

Uses of quotas

Answer 22

Import quotas are imposed to
protect jobs of domestic producers

Import Quotas are also imposed as
a bargaining chip to be used in
negotiations on trade

Question 23

Advantages of quotas

Answer 23

1 protects domestic industries
e.g. USA calling for quotas on
steel imports

2 safeguards jobs in domestic
industries

3 Benefit to the customers, the
price of imported goods rise so
domestic goods appear cheaper
and better value in comparison

Question 24

Disadvantages of Quotas

Answer 24

Quotas are also complex for the country using them. They require a lot of paperwork indicating exact amounts of products for each country facing a quota

When one country uses quotas, its trading partners do the same and
the end result is less exporting opportunity for all producers and higher
prices for all consumers.

Question 25

Government Legislation

Answer 25

Laws on what can and can’t be imported/exported

Sometimes a country will not be
able to set tariffs or quotas
because of trade agreements or
membership of a trade bloc

Question 26

Advantages of government legislation

Answer 26

Government legislation can be a
very powerful tool in preventing
fake imports into countries

Question 27

Disadvantages of government legislation

Answer 27

Every import into the UK cannot
be checked

Question 28

Domestic subsides

Answer 28

Money is given to local
producers to make their goods
cheaper on the domestic market

This artificially raises the price of
foreign goods relative to
domestic goods therefore
reducing demand for them

Question 29

Trading blocs

Answer 29

A type of intergovernmental agreement to reduce trade barriers

different types of trading blocs such as free trade areas, customs unions, common markets and full economic & monetary union

Uk is part of EU trading bloc

Question 30

EU Trading bloc

Answer 30

There is free movement of; people,
money, goods and services between all 28 countries

20 countries also use euro

Question 31

Hard Brexit

Answer 31

A hard Brexit would likely see the UK give up full access to the single market and full access of the customs union along with the EU

A hard Brexit, however, could see
British goods and services subject to tariffs, adding 10% to the cost of
exported cars

Question 32

Soft Brexit

Answer 32

• A soft Brexit would mean that the
  UK would have full access to the
  single market on a tariff free basis
• British firms could also do business
  in any part of the EU, and the

Question 33

Free Trade

Answer 33

1 Freedom to trade; For example UK businesses can sell goods and services

Free trade is trade that takes place between counties without
protectionism e.g. no tariffs or quotas on imports

freely across the whole of the European Union
#2 Enlarged market; For example the size of the market for British goods is now 499 million people, can mean EOS
#3 Protection from international competition outside of the BLOC; For
example UK businesses are protected from competition from China
#4 Freedom of movement of people; For example UK firms can employ
talented people from across Europe.

Question 34

Drawbacks of free trade

Answer 34

Dominance of developed
countries in global trading

• It can kill off domestic business
  in developing nations
• It can reduce national
  sovereignty or identity as
  countries become standardised,
  westernised and Mcdonaldized