4.1 Flashcards

1
Q

GDP definition

A

value of all the goods and services product in a country within a year

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2
Q

emerging economy definition

A

market with rapid growth but also with a lot of risk

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3
Q

how does growth affect individuals and businesses

A

increases wages

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4
Q

growth rate of uk economy compared to emerging economies

A

uk economy slower growth rate compared to emerging economies

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5
Q

growing economic power of countries

A

Asia, Africa
Growth results from higher average incomes and development of neew incomes and markets
Increase in income –> greater demand

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6
Q

effects of economic growth on trade opportunities

A

increased FDI
opportunities to export to developing opportunities

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7
Q

effects of economic growth on employement patterns

A

Unemployment rates fall
Skilled worker level increases
- international businesses can recruit

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8
Q

Issues with gdp

A

GDP does not take inflation into account , increase in GDP could just be inflation rather than economic growth
GDP can be hard to compare across currencies
GDP per capita does not take into account income distribution

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9
Q

Indicators of Growth other than gdp

A

Health: life expectancy, mortality rates
Literacy : gives the quality of education
HDI

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10
Q

What is HDI

A

Combines statistics, longevity, basic education and minimal income
Figure between 0 &1

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11
Q

Import and export definition

A

Import- selling goods that are made in another country
Exports- selling domestic goods to other countries

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12
Q

FDI and business growth

A

FDI allows a business to benefit from comparative and competitive advantage directly being able to use a countries resources/ workers

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13
Q

Globalisation definition

A

The increasing integration and cooperation between countries and the growth of international trade

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14
Q

Factors contributing to increased globalisation

A
  1. Reduction of trade barriers/trade liberalisation
  2. Political change - democracy - better communication
  3. Reduced cost of transport and communication.
  4. increased significance of transnational companies. Bring cultures together
  5. Increased FDI
  6. Migration.
  7. Global population increase (increase in labour force)
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15
Q

Protectionism definition

A

Protecting domestic businesses against foreign competition

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16
Q

Tariffs

A

Tax on imports
- increases the price of imported goods making domestic businesses more competitive

17
Q

Quotas

A

Physical limit set on the number of units that can be imported into a country

18
Q

Subsidies

A

Government grants given to help exporting businesses so they can lower their prices to compete internationally

19
Q

Trading bloc definition

A

Partnerships and agreements between nations to allow free trade and collaboration

20
Q

EU ASEAN NAFTA

A

Eu- single market , common laws
NAFTA- North American free trade zone
ASEAN - SE Asian free trade zone

21
Q

Benefits and drawbacks of trading blocs

A

+ opportunities to expand into new markets
+ benefit from comparative advantage
+ easier source labour
- infant industries vulnerable to large international competitors