Economics Flashcards
Define Interdependence
When countries/businesses rely on each other for the trade of services and goods. E.g.china and Australia trade and depend on each other for resources such as gold or nickel.
Trade
Companies/countries giving each other resources or services for other resources and services in return.
Globalisation
The increasing interdependence of world economies as a result of cultures and populations.
International Competitiveness
Is the ability of a nation to compete successfully overseas.
Exports
Sending goods/ services out overseas to other countries
Imports
Bring goods/services in from another country
Migration
Movement of a person or people from one country to another
Tourism
Is a social,cultural and economic movement of which people travel
Supply chain
Is a network of companies and people that are involved in production and delivery of a product or service
Outsourcing
Is the practice of hiring a party outside a company to perform services or create goods
TNC’s
Is a company that has operations in multiple countries (transitional corporation)
Savings
A portion of income not spent on current expenditures
Investment
Is an assets acquired or invested in to build wealth and save money form hard earned income
Risk tolerance
Is the amount of loss an investor is prepared to handle wile making an investment decision
Shares
Are a way of participating in the ownership of a company