4.1 - Globalisation Flashcards
Define Globalisation
The increasing integration and cooperation between countries and the growth of international trade.
What are BRIC countries?
Brazil, Russia, India and China - these nations account for 30% of global production alone and are developing countries on their way to becoming developed countries
What are MINT countries?
Mexico, Indonesia, Nigeria and Turkey - countries that have the potential to realise rapid growth
Define emerging market
The economy of a developing nation that is becoming more engaged with global markets as it grows. It transitions from a low income, less developed, often pre-industrial economy towards a more modern, industrial economy with a higher standard of living
Define agents
Specialists in trading, understand the local market and make trading process easier
Define Foreign Direct Investment (FDI)
FDI involves direct investment into a country, leading to a business becoming a multinational corporation. This could include: setting up production facilities, buying assets in a foreign country. Far riskier than exporting or importing but gives the business a competitive advantage
Define trade liberalisation
Involves a country lowering import tariffs and relaxing import quotas and other forms of protectionism
Define tariffs
A tax imposed by the government on imports and exports
Define quotas
Trade restrictions that limit the number of monetary value of goods that a country can import or export during a particular period
Define embargoes
An official ban on trade or other commercial activity with a particular country
What is a trade bloc?
Partnerships and agreements between a group of nations to allow free trade and the collaboration and integration of economic, political and cultural policies.
Define free trade area
Removing restrictions on trading between members thus goods and services flow freely between them
Define customs union
More advanced than a free trade area - members agree to joint tariffs when they trade with non - members
Define common market
Combinations of customs unions plus the removal of barriers to the flow of factors of production, such as: eliminating trade barriers, removing barriers to capital and labour flows, uniform policies regarding trade with non - member countries
Define economic union
Combine all aspects of the common market and also coordinate economic policy. E.g. the EU
