Chapter 15, The European Union, emerging markets and the global context Flashcards
1
Q
Free trade
A
trade without tariffs or quotas being imposed when products are traded
2
Q
Single market
A
a market in which there is a common set of laws and regulations relating to all trade within it
3
Q
Benefits of free trade within the EU
A
- Encourages competition
- Business have to seek out cost reductions in order to lower prices
- lower prices mean more consumer spending
- new technological developments
4
Q
Eurozone
A
the collective name for countries that have adopted the euro as their single currency
5
Q
European Central bank
A
the central bank that sets interest rates for the whole of the Eurozone
6
Q
Globalisation
A
the process of growth in world markets through a process of integration where it is possible to trade in a global market in the same way as one would in a domestic market
7
Q
Advantages of Globalisation
A
- incoming company brings investment, jobs, and training
- News and ideas are spread quickly and easily around the world so that we know about events such as natural disasters
- LDC’s need foreign currency to buy imports and thus money can be used to improve their infastructure
8
Q
Disadvantages of Globalissation
A
- often the LDC’s don’t reap the benefits of trade
- lack of regulations in LDC’s often results in poor working conditions, pay, and health and saftey
- the multinational cooperation may impose their own ethics on the local population of LDC’s
