4.1 Globalisation Flashcards
Economic Growth
An increase in a country’s productive capacity
Mature markets / Developed economies
An economy which has already undergone high growth
Emerging markets
Country where there is already rapid growth and further scope for potential growth
Economic Superpowers
Countries with global influence (economically, culturally and geopolitically) and power
Gross Domestic Product (GDP)
The total value of a country’s output over a given period of time
Exports
Goods that are produced by a country and are sold to another
Imports
Goods that enter the country from abroad
Specialisation
Process of concentrating on and becoming an expert in a particular field
Comparative Advantage
Country can produce a good or service at a lower opportunity cost than another
Foreign Direct Investment (FDI)
Business from one country decides to establish itself in another country
Multinational Company
A firm that operates in more than one nation, means they’ve undertaken FDI
Globalisation
World is becoming increasingly more interconnected as a result of massively increased trade and cultural exchange
Trade Liberalisation
International trade is made easier through relaxation of tariffs and barriers
Structural Change
Economic condition that occurs when an industry changes the way it operates e.g primary sector (agriculture) –> secondary sector –> tertiary sector
Protectionism
Practice of protecting a country’s domestic industries from foreign competition
