Chapter 29 Flashcards
Globalisation
Increases in worldwide trade and movement of people and capital between countries.
Free trade agreement/free trade area
Exists when countries agree to trade imports/exports with no barriers such as tariffs and quotas.
Import tariff
A tax on imported goods
Import quota
A restriction on the quantity of a product that can be imported
Protectionism
When a government protects domestic businesses from foreign competition, like using tariffs and quotas
Multinational business
Businesses with factories, production or service operations in more than one country
Exchange rate
The price of one currency in terms of another ($1 = 6.91bs)
Currency appreciation
When the value of a currency rises - it buys more of another currency than before
Currency depreciation
When the value of a currency falls - it buys less of another currency than before
Common (single) currency
When a group of countries agree to use the same currency (e.g Euro)
Economic union
Agreements between countries to trade freely with each other and have common economic institutions (e.g The European Union)
