4. The global context

Question 1

Tariff

Answer 1

taxes placed on imported goods in an attempt to prevent people from buying them

Question 2

Free trade areas

Answer 2

No quotas and tariffs, if one country has lower tariffs for non member, they can import and then resell to other member countries
Specialisation/ compartive advantage

Question 3

sunset industries

Answer 3

industries that are coming to an end/ inefficiency

Question 4

infant industries

Answer 4

just started up, not had enough time to reach economies of scale

Question 5

comparative advantage

Answer 5

Comparative advantage is an economy’s ability to produce a particular good or service at a lower opportunity cost than its trading partners

Question 6

competitive advantage

Answer 6

A competitive advantage is anything that gives a company an edge over its competitors

Question 7

absolute advantage

Answer 7

the ability of an individual, company, region, or country to produce a greater quantity of a good or service with the same quantity of inputs per unit of time

Question 8

remittances

Answer 8

when a immigrant gives money back to their own country

Question 9

bad things about globalisation

Answer 9

• if a good has inelastic supply, and changes in market conditions ruin the price
• depletion of resources
• protectionism