Chapter 16, International trade and free trade Flashcards
1
Q
Benefits of international trade
A
- Variety of products
- Economic growth
- Business growth
- International co-operation
- Specialisation
2
Q
Reasons Trade barriers
A
- foreign competition can result in unemployment
- businesses have not reached a sufficient level of growth to be able to compete with the big companies
- If a country runs a large balance of payment deficits it might try to reduced imports
3
Q
Trading Bloc
A
A group of countries within a particular geographical region that protects themselves from imports from non-members.
4
Q
Types of Trading Bloc
A
- Free trade area
- A Custom Union
- A Common market
- The EU
5
Q
Exchange rate
A
the value of the pound in terms of another currency
6
Q
Foreign exchange market
A
the market for currency which is not in the single location but exists globally whenever buyers and sellers deal
7
Q
How is Exchange rate determined
A
the influence of demand and supply
see notebook notes
8
Q
Hot Money
A
flow of money from country to country, which is chasing the highest rate in interest it can get possible
9
Q
SPICED
A
Strong Pound Imports Cheap Exports Dear
