Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Economics > Economics Topic 1 Year 12 > Flashcards

Economics Topic 1 Year 12 Flashcards

1
Q

Globalisation

A

Refers to the integration between different countries and economies and the increased impact of international influences on all aspects of life and economic activity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Gross World Product (GWP)

A

The sum of total output of goods and services by all economies in the world over a period of times

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

World Trade Organisation (WTO)

A

An organisation of 164 member countries that implements and advances global trade agreements and resolves trade disputes between nations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Composition of trade

A

The mix of what goods and services are traded

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Speculators

A

Investors who buy or sell financial assets with the aim of making profits from short-term price movements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Exchange Rates

A

The price of one currency in terms of another economy’s currency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Foreign Exchange Market

A

The market in which currencies are traded

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

International Monetary Fund (IMF)

A

An international agency that consists of 190 members and oversees the stability of the global financial system

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Foreign Direct investment (FDI)

A

The movement of funds between economies for the purpose of establishing a new company or buying a substantial proportion of shares in an existing company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Transnational Corporations (TNCs)

A

Global companies that dominate global product and factor markets, they have production facilities in at least two countries and are owned by residents of at least two countries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

International Division of Labour

A

How the tasks in the production process are allocated to different people in different countries around the world

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Business Cycle

A

The fluctuations in the level of economic growth due to either domestic or international factors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Gross Domestic Product

A

The total market value of all final goods and services produced in an economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

International Business Cycle

A

The fluctuations in the level of economic activity in the global economy over time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Factors that Strengthen The International Business Cycle

A
  • Trade flows
  • Investment flows
  • Transnational corporations
  • Financial flows
  • Technology
  • Global interest rates
  • Commodity prices
  • International organisations
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Factors That Weaken The International Business Cycle

A
  • Domestic interest rates
  • Government fiscal policies
  • Other domestic economic policies
  • Exchange rates
  • Structural factors
  • Regional factors
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Regional Business Cycle

A

The fluctuations in the level of economic activity in a geographical region of the global economy over time

18
Q

Comparative Advantage

A

The economic principle that nations should specialise in the areas of production in which they have the lowest opportunity cost

19
Q

Opportunity Cost

A

The cost of satisfying one want over an alternative want, also know as the economic cost

20
Q

Free Trade

A

A situation where there are no artificial barriers to trade imposed by governments for the purpose of shielding domestic producers from foreign competitors

21
Q

Protection

A

Refers to government policies that give domestic producers an artificial advantage over foreign competitors

22
Q

Dumping

A

The practice of exporting goods to a country at a price lower than their selling price

23
Q

Aggregate Supply

A

The total supply of goods and services produced within an economy at a given overall price level and in a given period

24
Q

Aggregate demand

A

The total demand for goods and services within an economy at a given overall price level and in a given period

25
Q

Financial market confidence

A

The level of confidence that investors and consumers have in financial markets. Affected by economic conditions, confidence can lead to increases or declines in investment and spending

26
Q

Animal spirits

A

A term used in economics to describe the emotions and instincts that drive consumer and business confidence, influencing economic decision-making

27
Q

Tariffs

A

Taxes on imported goods imposed for the purpose of protection

28
Q

Key Reasons for Protection

A

Protecting infant industries
Prevention of dumping
Protection of domestic employment
National security and self-sufficiency

29
Q

Regional integration

A

The process through which neighbouring countries coordinate policies, reduce trade barriers, and increase economic cooperation to strengthen their regional economies

30
Q

Trade bloc

A

Occurs when a number of countries join together in a formal preferential trading agreement, to the exclusion of other countries

31
Q

Quotas

A

Refer to restrictions on the amounts or values of various kinds of goods that may be imported

32
Q

Subsidies

A

Cash payments from the government to businesses to encourage production of a good or service and influence the allocation of resources in an economy

33
Q

Local content rules

A

Goods must contain a minimum percentage of locally made parts, in return for not attracting a tariff

34
Q

Export incentives

A

Programs which give domestic producers assistance such as grants, loans or technical advice and encourage businesses to penetrate global markets or expend their market share

35
Q

Advantages of free trade

A
  • Allows countries to obtain goods and service that they cannot produce themselves
  • Allows countries to specialise according to comparative advantage
  • Encourages the efficient allocation of resources
  • Leads to economies of scale
  • Improves international competitiveness of domestic producers
  • Encourages innovation and development
  • Leads to higher living standards
36
Q

Disadvantages of free trade

A
  • Increase in unemployment in the short-term, can lead to longer term unemployment in some domestic industries that are less efficient
  • More difficult to establish new industries
  • May encourage environmentally irresponsible production methods
  • May incite “dumping” practices
  • May undermine national security in times of emergency, reduces self-sufficiency
37
Q

GWP Stat

A

GWP = US$105 trillion

38
Q

Composition of Trade Stat

A
  • Manufactured goods make up 54% of global trade (6% ↓ from 1995)
  • Commercial services make up 24% of global trade (4% ↑ from 1995)
39
Q

Direction of Trade Stat

A
  • High-income share of global trade ↓ from 85% to 70%
40
Q

Technology

A
  • Internet usage has ↑ from 7% in 2000 to 67% in 2023

Economics (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions