(1)International economic integration Flashcards
What is economic integration and name the main form of integration.
-economic integration- liberalisation(taking away trade barriers) of trade between two or more countries or many countries
-main forms include-
Free trade, custom unions, common markets, monetary unions.
what is a free trade area.
A region where member countries agree to eliminate tariffs, import quotas, and preferences on most goods and services traded among them, while each country retains its own trade policies with non-members.
what is a customs union
An agreement between countries to allow free trade among themselves and adopt a common external tariff on imports from non-member countries.
what is a common market?
with example
A customs union that additionally allows free movement of goods, services, capital, and labour among member countries.
What is a Monetary union?
A group of countries that share a single currency and have a unified monetary policy, such as the Eurozone within the European Union.
what is GDP and what is GWP?
GDP-gross domestic product- total value of all goods/services produced by ONE economy over a period of time.
GWP-gross world product
the total value of all the goods and services produced by all the economies in the world over a period of time, usually a year.
What is globalisation
(3 increases)
The process of increasing integration between economies due to increase-
trade,capital flows, and technology.
what are the indicators of globalisation.
-trade in goods and services
-financial flows
-investment and transnational corporations
-technology, transport and communication
-international division of labour, migration
- the international and regional business cycles
what are trade in g/s
measure of how g/s in an economy are produced in other economies.
what are financial flows (1 eg.)
why is there increase (2 eg.)
what- flow of money between countries.
why-financial deregulation (governments lift controls over financial sector) and
-advancement in tech has made Finance is the most globalized aspect linking economies, moves more freely and quickly than labour or g/s
what is FDI
Foreign direct investment-investors either buying companys or buy shares minimum 10% of company
what are TNC’s and how much of global trade do they account for?
what are mergers and acquisitions.
-transnational corporations are company that operate in more than one country
-account for 1/2 of global trade
mergers- when companies join together
acquisition - when one company buys another.
how is techhnology, transport (2 eg) and communication(1 eg.)
link affecting globalisation.
technological development has allowed easier transport of g/s through trade routes and standardised shipping containers and has allowed fast and cheap communicaton through internet.
explain the trend in the movement of labour
-Highly skilled workers are attracted do richest economies (EU, US); higher pay, more opportunities
-Low skilled labour is in demand in advanced economies. Local people won’t do basic jobs. (fruit picking UK)
what is and how is the international business cycle measured,
-and explain the trend of the affect of countries business cycle on others
- (1 eg.)
-it is the fluctuation in globale economic growth measured by GWP
-generally growth in economies are synchronized.
-eg- GFC- bursting of housing and financial institution impacted countries all over the world. as growth fell in US all countries growth fell.
