Chapter 32

Question 1

Globalisation

Answer 1

Refers to the rapid expansion of international trade leading to countries becoming less independent and more interdependent

Question 2

International trade

Answer 2

Exchange of goods and services between countries

Question 3

Visible trade

Answer 3

Is the import and export or physical goods

Question 4

Invisible trade

Answer 4

Is the import and export or services

Question 5

Balance of trade

Answer 5

Is the difference between the value of the physical goods we export and import

Question 6

Balance of payments

Answer 6

Difference between total exports( visible and invisible) and total imports ( visible and invisible )

Question 7

Open economy

Answer 7

Where exports and imports take up a large percentage of gdp

Question 8

A closed economy

Answer 8

Is a country that’s does not participate in international trade

Question 9

Trading partners

Answer 9

Countries that trade with each other regularly

Question 10

A trade embargo

Answer 10

Is a complete or partial ban doing business with a specific country

Question 11

A tariff

Answer 11

Is a tax charge or specific imports

Question 12

A subsidy

Answer 12

Is a form of government financial aid to help producers reduce their costs

Question 13

The European Union

Answer 13

Is a large international free-trade area and political alliance