Chapter 28

Question 1

Globalisation

Answer 1

Increases in worldwide trade and movement of people and capital between countries.

Question 2

Free trade agreement/
free trade area

Answer 2

Exists when countries agree to trade imports/exports with no barriers such as
tariffs and quotas, e.g. ASEAN.

Question 3

Protectionism

Answer 3

When a government protects domestic businesses from foreign competition using,
e.g. tariffs and quotas.

Question 4

Multinational business

Answer 4

Businesses with factories, production or service operations in more than one country.

Question 5

Currency appreciation

Answer 5

When the value of a currency rises - it buys more of another currency than before.

Question 6

Currency depreciation

Answer 6

When the value of a currency falls - it buys less of another currency than before.

Question 7

Common (single) currency

Answer 7

When a group of countries agree to use the same currency, e.g. Euro.

Question 8

Economic union

Answer 8

Agreements between countries to trade freely with each other and have common
economic institutions, e.g. The European Union (EU).