4.1 International economics Flashcards
4.1.1 A)
Define globalisation
The process of greater intergration & interconnectedness between countries
4.1.1 A)
What are the char of globalisation
Growth of international trade
trade liberalisation
enchance mobility of capital & labour
^outsoucring
v transport costs
^ size & influence of mutinational corporations
4.1.1 B)
What are factors contributing to globalistation
Transport
internet
trade agreement
Rediced tariffs & protectism
expansion of global trading block
Improved technology
More globalised financial systems
greater labour mobility
improvements in transport
growth in mnc
openess of former closed economic
4.1.1 B)
What are factors contributing to globalistation
Transport
Quicker to move goods
4.1.1 B)
What are factors contributing to globalistation
internet
Quicker to move infomation
4.1.1 B)
What are factors contributing to globalistation
trade agreement
world trade org assists revoal of trade barriers > ^ trade
4.1.1 B)
What are factors contributing to globalistation
Rediced tariffs & protectism
Reduce tax on imports and allow trade
4.1.1 B)
What are factors contributing to globalistation
expansion of global trading block
reduced national barriers promoites trade
4.1.1 B)
What are factors contributing to globalistation
Improved technology
Revolutionalised comminication lowered labour costs allow for access to new market
4.1.1 B)
What are factors contributing to globalistation
More globalised financial systems
relaxation on rules & regulation capital can move freely or at low cost quicker
4.1.1 B)
What are factors contributing to globalistation
greater labour mobility
worker willing to move across national border
4.1.1 B)
What are factors contributing to globalistation
improvement in transport
Movement of people goods & servies easter & cheaper
4.1.1 B)
What are factors contributing to globalistation
growth on mnc
Org takes adv of trade barriers labour mobility cheap transport to grow rapidly and enter new markets
4.1.1 B)
What are factors contributing to globalistation
openess of former closed economic
Large and rapid developing countries such as india and china inc intergrated into global economy
4.1.1 C)
Pos impacts of globalisation
Standards of living inc in lic
cheaper goods
consmer choice
Improved allocation of rec
mulitpier effect
4.1.1 C)
Neg impacts of globalisation
Low wages in LIC
v working conditions to v costs
money stays in rich countries
mnc move around to find cheaper labour
pollute local area
put local busniesses out of busniess
4.1.3 A)
How does geographical location effect pattern of trade
further means more expensive
4.1.3 A)
How does commodities effect pattern of trade
Certain goods from diff places in the world
4.1.3 A)
How does trade blocks effect pattern of trade
Makes trading more accessable
4.1.3 A)
How does emerging economies effect pattern of trade
^pop, ^ ss of labour, v wage, v cost of production
4.1.3 A)
How does deindustrilisation effect pattern of trade
Finacial and tertiary markerting growing.
4.1.3 A)
What is absolute advantage
a coutry produce a good at a lower direct costs
4.1.3 A)
What is comparative advantage
country can produce a good servies at lower opp cost when country more efficent
4.1.3 A)
How does comparative advantage incluence POT
Developing country produce eacher
improvment in production and v inflation pressure
v manufacturing in devlopoing country v neg externalites
4.1.3 A)
How does the impact of NEE effect POT
^ trade made NEE participatete more eff in global trade
NEE find it hard to access large market
Growth in NEE led to rise in primary recources
4.1.3 A)
How does growth of trade effect POT
Trading block grow
allow free trade, removes barriers
agreements
4.1.3 A)
How does realtive exchange rate effect POT
Appreciaton in exhange rate will lead to a fall in exporet and price of goods aborad will rise
dependant on PED of product
4.1.4 A)
What does terms of trade measure
measures the rate of exhange of one product for another when two countries trade
it tells us the qty of exports that need to be sold in order to purchase given level of import
4.1.4 A)
What is favourable / unfavourable
movement in the terms of trade is favourable if terms of trade increaee as country can but more imports with same level if exports
visa versa
4.1.4 A)
calc of terms of trade
(avg export price index / avg import price index ) 100
4.1.4 B)
factors influcening a countries term of trade
^ exports prices or v import prices = improvment in terms of trade
versa visa is deterioation in terms of trade
improvments in productivity
changing income
exhange rates