economics Flashcards
What is internationalization?
International exchange of goods & services
What is the main indicator of economic INTERNATIONALIZATION?
trade/GDP ratio
What is economic globalization?
Global interconnectedness of activities
also: quantitative & qualitative!
hard def:
-not static
-spatial & temporal dimensions
-magnified local-global impacts
What are the 2 key phases of international trade
1500-1800 - Early commercial expansion (Europe)
1800-WW1 - Rise of colonial economy
3 Factors of production
LLK
What is an excludable good?
Limited access to good
What is a rivalrous good?
Finite availability
Two drivers of economic growth
New resources
Technological change
What is an adjustment measure for GDP
PPP
What is an alternative to GDP?
GNI
-incomes received rather than value of goods & servies
-remittance & aid
-large countries: similar to GDP
Name 3 alternate measures of development
HDI (human dev)
GNHI (happiness)
GPI (genuine progress)
What does the Gini coefficient assess?
income distribution
What does the Lorenz curve mean?
Income inequality.
Sharper curve = higher inequality
Key factors for industrial location
Access to inputs
Processing costs
Transfer costs
Institutional & cultural factors
2 key industrial regions in USA
Rust belt & Sun belt
2 Key slavic industrial regions
Russia & Ukraine
4 Tigers
STHS
South Korea
Taiwan
Hong Kong
Singapore
Who’s in the global triad?
USA, Europe, China
Who are the 4 key Newly Industrialized Economies?
BRIC countries
Brazil
Russia
India
China
Which countries have experienced the strongest trade growth?
BRICs
What is the important micro-scale result of increased global trade?
World Cities
Result of Canada-US auto pact (1965)?
eliminated trade tariffs on vehicles & parts
2 Key economic sectors in Canada
Energy producst & Minerals
What is meant by “feeding the dragon”?
China massive importer
Why do countries trade?
Differences in factor endowments
What is the key difference between absolute & comparative advantage?
Comparative considers opportunity cost
What are Porter’s 4 pillars of competitive advantage?
Factor conditions (LLK)
Demand conditions
Supporting Industries
Firm strategy & structure
recall competitive diamond
